CARDIFF COUNCIL CYNGOR CAERDYDD COUNCIL: 23 FEBRUARY … · during the budget preparation period. Issues 19. The following sections of the report provide an update on the current

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CARDIFF COUNCIL CYNGOR CAERDYDD COUNCIL: 23 FEBRUARY 2012

EXECUTIVE PROPOSAL AGENDA ITEM: BUDGET PROPOSALS 2012/13 Appendix 17 to this report is not for publication under Schedule 12APart 4 paragraph 14 Local Government Act 1972 (as amended) in that it contains information relating to the financial or business affairs of others and the Council & the currency of negotiations means that exemption outweighs

the public interest in disclosure

Reason for this Report 1. To enable the Executive to:

(I) Submit to Council their proposal for the estimates of expenditure and income in order to set the Council Tax in accordance with the Local Government Finance Act 1992.

(II) Recommend to Council the strategy and plan for the control of the

Authority’s borrowing and investments for the year 2012/13 (the Annual Treasury Management Strategy).

(III) Recommend to Council the Prudential Code, capital expenditure and

treasury indicators for 2012/13 – 2014/15 and the Council’s Minimum Revenue Provision Policy for 2012/13.

(IV) Set the rent levels for Housing Revenue Account properties, service

charges and management fees for leaseholders for 2012/13.

(V) Agree the rates of fees and charges for Council services for 2012/13.

(VI) Recommend that Council approve the Affordability Envelope for the Organic Waste Treatment solution following the resolution of the Executive at their meeting on 6 October 2011.

(VII)Approve in principle the appropriation of land between the General

Fund and the Housing Revenue Account.

Background 2. The Council’s key strategic documents are the “What Matters” Strategy

(replacement for Community Strategy), Corporate Plan, and Budget.

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There is a clear alignment between the Corporate Plan, our priorities as a Council and the budget setting process, and how as a key partner within the city we will contribute towards the What Matters 2010/2020 Strategy.

• What Matters – Integrated Partnership Strategy – provides the

longer-term collective partnership vision for the promotion of economic, social and environmental wellbeing and high quality public services in Cardiff between 2010/2020.

• Corporate Plan – is the medium term plan setting out the Council’s

strategic priorities in response to the What Matters vision, citizen outcomes, corporate risks and required improvement actions.

3. For 2012/13, the Corporate Plan has been refreshed alongside budget

preparations and the priorities in the Plan are resourced within this budget proposal. The Corporate Plan itself is considered elsewhere on the agenda for this meeting and it can be seen that it continues to be outcome based. The Council’s budget supports these outcomes through detailed activities set out in the individual service plans.

4. The report to the Executive Business Meeting in July 2011 on the Budget

Strategy for 2012/13 set out a broad framework to enable work to commence on budget preparation. The Strategy was written within the context of continuing financial constraint and within the period of the three year indicative budget published by the Welsh Government (WG) in February 2011.

5. Guidance received from the Welsh Local Government Association (WLGA)

at the time the Strategy was being prepared was that the WG budget process for 2012/13 would seek to update the key pressures and risks facing both WG and local government. In addition, the scope for savings identified in the light of the Comprehensive Spending Review (CSR) and WG policy outcomes would be considered.

6. Although less budget turbulence was expected in the settlement for

2012/13 it was recognised that uncertainty still existed in respect of:

• Potential formula and data changes in the funding formula. • Impact of any further specific grants transferring into the Settlement

together with any changes to the quantum of those grants. 7. The content of the Medium Term Financial Plan (MTFP) approved as part

of the 2011/12 budget report together with the above indications from the WG resulted in the requirement for service areas to identify potential savings amounting to 10% of controllable budgets. For 2012/13, it was recognised that this target should include savings from both transformation and the more traditional mechanisms.

8. Work on the savings proposed by service areas was carried out during the

Autumn and Winter to ensure that those taken forward were realistic and achievable. This included a robust risk and equality impact assessment.

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9. The Budget Strategy Report also considered the Capital Programme as a key element of the Council’s budget. It is clear that as central government capital funding has reduced, local government has had to find a greater share of the capital funding requirement to meet essential investment.

10. Work carried out by the WLGA has established that since 2005/06 there

has been a 400% increase in the value of prudential (additional) borrowing undertaken by councils in Wales and in 2011/12 for the first time it became the biggest single source of funding for capital expenditure. However, they found concerns amongst local authorities that their unique power in the Welsh public service to borrow may bring an unrealistic expectation from stakeholders about their ability to undertake more long term borrowing than they can prudently afford to do given reducing revenue budgets. The Council has developed local indicators to review the affordability of its long term borrowing. Whilst borrowing is increasing it is not considered unaffordable although careful monitoring of these indicators will be required over the life of the Capital Programme.

11. The Budget Strategy Report in July 2011 reiterated that the current Capital

Programme (2011/14) requires resources from additional borrowing and general capital receipts of £25.6 million and £9 million respectively and included the impact of a forecast cut in the WG capital funding of up to 40% by 2013/14 as well as reductions in specific grant funding in key areas.

12. Although this leaves little scope for new schemes it was necessary to

consider and provide opportunities for investment that are affordable, sustainable and in accordance with the Corporate Plan. The appraisal process took the following items into account to ensure that schemes would:

• Be self financing over a prudent period of time through additional

revenue savings or income which needed to be demonstrated by a robust business case.

• Be self financing by releasing land and property with certainty of disposal within a short period of time.

• Attract a significant level of partner/external grant support where a Council contribution is also necessary.

• Aligned with the Council’s Transformation Programme. 13. As part of budget preparation, consultation has taken place through:

• The January 2012 Spending Priorities Survey sent electronically to the Cardiff Citizen’s Panel

• Scrutiny Committees • Trade Unions • School Budget Forum

14. Appendix 1 attaches the letters received from Scrutiny committees’

consideration of the Executive’s budget proposal and draft Corporate Plan. In addition it includes a summary report of the results of the 2012 Spending Priorities e-survey.

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15. The main findings of the 2012 Spending Priorities e-survey show that

attracting and retaining jobs is the top spending priority for Cardiff residents followed by community safety & crime prevention and then education. These findings are largely consistent with the findings from the 2010 Ask Cardiff Survey although attracting & retaining jobs has now become the top priority and education has replaced street repairs as a key priority for the residents of Cardiff.

Nov 2007 Nov 2008 Nov 2009 Nov 2010 Jan 2012

1st Highest Priority

Community safety and

crime prevention


crime prevention


crime prevention


crime prevention

Attracting and

retaining jobs

2nd Highest Priority

Litter, street

cleansing and

recycling

Litter, street cleansing

and recycling

Attracting and

retaining jobs

Street repairs and

traffic management


crime prevention

3rd Highest Priority

Education Street repairs and

traffic management

Litter, street

cleansing and

recycling

Attracting and retaining

jobs

Education

16. The findings of the survey also show that regeneration of the city centre &

Cardiff Bay and major events and venues, are the lowest spending priority areas for Cardiff residents. Again these findings are largely consistent with the findings from previous Ask Cardiff Surveys with leisure, health & exercise facilities also seen a low spending priority in 2012.

Nov 2007 Nov 2008 Nov 2009 Nov 2010 Jan 2012

1st Lowest Priority

Major events and venues


Libraries Major events and venues

Regeneration of the city centre and Cardiff Bay

2nd Lowest Priority

Natural and built

environment

Regeneration of the city centre &

Cardiff Bay




3rd Lowest Priority


Cardiff Bay


Libraries Leisure, health & exercise facilities

17. Comments received from the Trade Unions are summarised in paragraph

334. The School Budget Forum met on 31 January to consider the Executive’s budget proposal as it affected their remit. The Forum was particularly supportive of the proposal and commended the Executive on being able to protect and increase overall school budgets. The timing of the Scrutiny Committees meant that written comments had to be circulated

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at the Executive Business Meeting. These are reproduced as part of Appendix 1.

18. In addition, Members of the Budget Forum and Scrutiny Committees have

received briefings from the Chief Corporate Services & Section 151 Officer during the budget preparation period.

Issues 19. The following sections of the report provide an update on the current year,

introduce the impact of the WG financial Settlement and then proceed to develop the components of the budget for 2012/13.

Budget Update 2011/12 20. The Council’s Budget Report for 2011/12 identified significant operational

and financial challenges and risks in the medium term. These were reviewed as part of the Budget Strategy Report and are set out below:

• Necessity to deliver net cashable savings from transformation across

the programme areas within services. • Total quantum of savings to be achieved from Waste Management

and Street Cleansing as a result of the implementation of the Waste Strategy together with continued reliance on income from recyclates.

• Service impact of the significant reduction in headcount expected over the medium term.

• Continuing demographic demand for social care services if trendlines vary adversely from the anticipated position.

• Challenge of achieving income from fees and charges in a period of financial constraint.

• The ability to react to new service demands such as homelessness. • Total impact of new pay and grading model when implemented. • The level of additional borrowing undertaken in previous years and

proposed will require more revenue resources to be diverted for capital financing in future years.

• Self funding capital schemes that are approved on the basis of generating savings, increasing income or capital receipts but which fail to do so will also serve to increase pressure on the revenue budget.

• Accumulative effect of resources required to finance the Schools Organisation Plan.

21. The month 8 monitoring position shows the continuation of the improving

position evident at month 6 and is despite significant financial pressures being experienced in a number of service areas but particularly in relation to the Children’s, Education and City Management services. Although some evidence of pressures being linked to the economic difficulties remain, the real concern continues to be in relation to the long term budget needs of social care and education which have been considered as part of this budget proposal. Within the overall month 8 position, an amount of £992,000 has been highlighted to be used as funding for exceptional employee costs. This together with any further opportunity to accrue

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savings at the finalisation of the 2011/12 accounts will be used towards payment of the Council’s eligible outstanding Equal Pay claims when those negotiations have been concluded and the level of liability is known.

The 2012/13 Settlement 22. This Settlement is the second year of the WG’s current three year budget

cycle. The final Local Government Revenue and Capital Settlement for 2012/13 was announced by the Minister for Social Justice and Local Government on 7 December 2011. This followed the announcement of the Provisional Settlement on 18 October 2011 and took into account responses that had been received during the consultation period. The main points to note in the Settlement at an all Wales level are:

• A range of change in Aggregate External Finance (AEF) of between

plus 1.5% and minus 1.8%. • Overall average indicative increases for 2013/14 and 2014/15 of

1.3% and 0.6% respectively. • Restatement of the requirement for local authorities to protect

schools and social care budgets by 1% more than the change in the WG’s budget in 2012/13 and 2014/15.

23. Within the Settlement papers, the Minister made it clear that he would not

follow the UK Chancellor’s policy of awarding additional funding to implement a Council Tax freeze. Instead the consequential funding would be used in Wales to support the economy and safeguard jobs. However, the Minister also made it clear that as in previous years, he stands ready to use the capping powers vested in Welsh Ministers to limit any increase that he considers unreasonable.

24. Within the range of change in AEF set out above, Cardiff’s settlement was

an increase of 1.5% which delivered additional resources over 2011/12 of £5.734 million. The main reason for this above average increase is the fact that Cardiff’s general population increase was again the highest in Wales and serves to help explain the demographic and service pressures that continue to be evident in many of the Council’s demand led services.

25. In addition, as part of the overall settlement for Wales, information on

specific grants amounting to £812.6 million was published although this is not a final list and details are indicative in some areas. Appendix 2 sets out the current list of known grants. At an individual council level the position is even less clear with the only information currently available for Cardiff shown in the following table.

Grants announced for Cardiff but still liable to change

Grant Name £000 Post 16 Education 12,178Foundation Phase 9,797Cardiff Bay Legacy Fund 7,870Sustainable Waste 7,650Flying Start 4,974

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Community Learning 1,488Local Transport Services 566School Based counselling 462Welsh in Education 422Highways Borrowing Initiative 349Appetite for Life 201Basic Skills/Early Years/Family Learning 130Healthy Schools Network 124School Uniform Assistance 98Youth Work training 60Blue Badges 46School Induction 37

26. Generally these specific grants will be available to the particular service

area as additional resources, subject to the relevant terms and conditions. A provision of £200,000 has been set aside in the budget to assist in managing the impact of changes to specific grants.

Protection for Schools and Education Indicator Based Assessment 27. In anticipating the 2011/12 Budget, the WG First Minister made a

commitment to protect Schools funding by 1% above the Revenue Block Grant received by the WG from the UK Government.

28. In order to evidence this level of protection, each Local Authority was

required to demonstrate for the financial years 2011/12 - 2013/14 that Individual Schools’ Budgets (ISB) were adjusted in accordance with the indicative target set for each year.

29. The broad principle is that each Council’s net ISB should be adjusted to

deliver a 1% better settlement than the WG revenue budget received in the CSR (see table below), adjusted to take account of any increase or decrease in pupil numbers each year (as this will impact on the level of funding each council receives through AEF). The table shows that for 2011/12, Cardiff was required to demonstrate that the ISB should decrease by no more than 0.33%. In fact, Cardiff was able to demonstrate growth to ISB budget of 1.82%. The table further illustrates the indicative levels of protection for ISBs for 2013/14 and 2014/15 respectively.

Year WG

Budget %

Level of Protection

% 2011/12 -1.33 -0.33 2012/13 +0.58 +1.58 2013/14 +1.08 +2.08 2014/15 +0.27 +1.27

30. The table shows that for 2012/13 the ISB should receive growth of at least

1.58%. The mechanism designed to ensure that all Councils can demonstrate this protection has been agreed. Having considered this mechanism the figures contained within this budget proposal suggest that

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Cardiff will be able to demonstrate growth in 2012/13 of 1.93% in the ISB which is in excess of the target of 1.58%. This equates to extra resources of £3.515 million against a target growth of £2.873 million.

31. The demonstration of the protection of the ISB can not include any growth

as a result of increasing pupil numbers. Cardiff has allocated a further £950,000 to the ISB in respect of a net increase of pupil numbers. This equates to a total growth to the ISB of 2.4%.

32. Historically, the WG stated that pending the outcome of their review of the

Education formula, the Education Indicator Based Assessment (IBA) for each local authority would be used as the local education target spend. However, it should be remembered that the WG financial settlement is an unhypothecated funding stream and consequently the comparison can be for information only.

33. The relevant comparative figures for Cardiff are:-

Year IBA Budget Difference £m £m £m % 2009/10 209.20 212.30 3.10 1.482010/11 215.50 223.06 7.56 3.512011/12 216.53 226.24 9.71 4.482012/13 221.30 229.06 7.76 3.51

34. The above table indicates an excess of £7.76 million (3.51%) over the WG

local target in 2012/13 as a result of Council priorities within the overall budget. It is noted that the Cardiff Education IBA was increased by 2.2% reflecting the demographic growth (in this case pupil numbers) in the city. Therefore, whilst the budget proposed for the ISB is in excess of the protection of 1.58% there is a reduction in 2012/13 of the amount Cardiff allocates to Education in excess of its IBA.

35. The WLGA and WG have committed to increasing the percentage of

delegated funding to schools as a proportion of the Education Budget. The current commitment is to ensure delegated rates are at least 80% but with a target of 85% in the near future. The Cardiff Budget proposal within this report will indicate a delegation rate of 81.44%. Based on the current guidance on how to calculate the delegation rate, approximately £10 million will be required to be delegated to the ISB or reduced from Centrally Retained Education Budgets in order for the 85% to be achieved. The Council will review this position as guidance becomes clearer.

Protection for Social Care 36. In line with the position on schools, the WG First Minister also made a

commitment to protect social care funding by 1% above the Revenue Block Grant received by the WG from the UK Government. The level of protection is set out in the table in paragraph 29 and indicates that for 2012/13 the level of funding allocated to social care should demonstrate growth of at least 1.58%. This represents an increase compared to the level of protection in 2011/12 which the Council's budget significantly

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exceeded showing growth of 3.9% on the overall social care budget for that year.

37. In 2012/13 the increase to the Council's social care budgets once again

significantly exceeds the level of protection, reflecting the pressures faced by Adult and Children's Services both in the current year and in relation to future demographic trends. The increase also reflects the estimated impact of the new pay and grading scheme on these services although these figures are still provisional and have not yet been added to the service area budgets. In meeting these pressures the Council's budget includes a net increase of an additional £2.269 million for Adult Services (+2.8%) and £2.923 million for Children's Services (+7.3%). This represents an overall increase of £5.192 million (+4.3%).

Resources Available 38. The unhypothecated resources available to the Council from the WG as

part of the Settlement are set out below:

Resources £000 Revenue Support Grant (AEF Funding) 307,237NDR (AEF Funding) 93,743Outcome Agreement Grant 2,437Concessionary Fares (tbc) 11,700Unhypothecated resources from WG 415,117

39. The receipt of the Outcome Agreement Grant is dependant on achieving

the outcomes agreed jointly between the WG and the Council and requires evidence of collaborative working. Deductions will be made from the grant where the outcomes are partially or not achieved based on the following scale:

Points matched to outcome achieved

% Grant

25 – 30 100 20 – 24 75 15 – 19 50 0 – 14 0

40. As the maximum grant will be awarded only where all outcomes are

successfully delivered in collaboration, the budget takes a prudent approach and assumes that 75% of the grant will be achieved in respect of 2012/13. This continues the position adopted in the 2011/12 budget and any variance in the outcome achieved will result in either additional or reduced grant being received in 2012/13. The Council achieved 100% of the value of this grant in 2011/12 but it should be noted that this was the first year of the new regime and so the outcome may not be representative of the WG’s challenge to the verification of achievements in future years.

41. The report to Council in December 2011 in respect of the Council Tax

Base implied an increase in the number of Band D equivalent properties expected by the end of March 2013. This increase will generate an

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additional £1.514 million in Council Tax without any increase in the rate of tax. However, the WG takes account of increases in the Council Tax Base by reducing the Council’s AEF grant funding.

42. The following table sets out the total resources available to finance the

budget before any increase in the rate of Council Tax.

Total resources available £000 Resources from WG Settlement 415,117Use of earmarked reserves 1,314Council Tax (at nil increase) 127,362Total resources available 543,793

43. The level of earmarked reserves, together with their purpose has been

reviewed and this budget proposal includes the use of these amounting to £1.314 million.

Resources Required 44. The following table summarises the spending required to cover base

expenditure, commitments and budget realignments:

Total resources required £000 £000 2011/12 adjusted Base Budget (after transfers) 534,240Employees (new grades, increments and pensions) 5,366 Service expenditure and income realignments 2,722 Exceptional Inflation 1,012 Capital Financing 1,733 Landfill tax and carbon allowances 577 Past year commitments 558 Specific Grant Protection 200 Other 1,648 Total resources required 548,056

45. A more detailed breakdown of the above including the total accepted

financial pressures and savings is shown in Appendix 3. Funding Gap 46. A comparison of the resources available to the Council (with no increase

in the rate of Council Tax) with the resources required before the inclusion of any new financial pressures reveals the following shortfall:

Funding Gap £000 Resources required (before new pressures) 548,056 Resources available (at nil Council Tax increase) 543,793 Shortfall before new pressures and savings 4,263

47. In preparing this budget proposal, the Executive has been mindful of the

need to balance Corporate Plan priorities and service requirements with the impact on Council Tax payers particularly during this extended period

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of financial constraint. Consequently the Executive with officers have considered new financial pressures together with savings options proposed by service areas. The developing Transformation Programme has enabled a significant level of savings from transformation to be included in the budget for the second year in a row.

48. This Executive budget proposal acknowledges new financial pressures

totalling £11.954 million that support the achievements of the objectives in the Corporate Plan for 2012/13. Within the pressures an additional amount of £1.2 million has been provided for investment in transformation to ensure that the activities necessary to continue to achieve the outcomes over the medium term are resourced. Appendix 4 shows the detail of the financial pressures.

49. Savings accepted within this budget proposal amount to £14.379 million

and equate to 5.3% of the overall controllable budget although there is considerable variation between service areas. Savings from transformation have been integrated with other savings as a result of many projects now being defined and in progress. Appendix 5 shows the savings in detail while Appendix 6 sets out the transformation savings accepted across service areas.

50. The following table concludes that the amount to be raised from additional

Council Tax in 2012/13 is £1.838 million and will result in an increase in the rate of tax of 1.4%.

Budget Shortfall £000 Shortfall before pressures and savings 4,263 Add, new financial pressures 11,954 Sub Total 16,217 Less, savings (14,379) Amount to be raised from additional Council Tax 1,838

Financial Standing and Risks 51. In considering the Council’s budget proposals, Members must have regard

to the financial standing of the Council and the impact of their budget decisions on services, citizens, customers and communities.

52. In his Annual Improvement Report of December 2011, the External Auditor

commented that “The Council is well placed to address its financial challenges. The Council has a medium term financial plan and can demonstrate strong and accountable financial leadership. Roles and responsibilities are clear at member and senior officer level. Budget and service planning processes enable the Council to specify priorities and make choices within its means.”

53. The level of the General Fund Balance at the beginning of 2011/12

amounted to £11.3 million and no drawdown is assumed as support for the 2012/13 budget. However, it is proposed to use earmarked reserves amounting to £1.314 million to support the budget, of which £858,000

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relates to expenditure linked directly to the purpose of the particular earmarked reserve.

54. A list of the General Fund earmarked reserves estimated at 31 March

2013 is attached as Appendix 7(a) while Housing Revenue Account and School reserves are set out in Appendices 7(b) and 7(c) respectively. As part of the review of the level and purpose of earmarked reserves the following amendments have been made:-

• £1 million transferred to the Homelessness reserve from the

Supporting People reserve in recognition of the potential increase in homelessness within the city.

• Renaming of the Employment Realignment reserve to become the Equal Pay reserve in recognition of the ongoing negotiations with the Trade Unions as part of the finalisation of the Collective Agreement on the new pay and grading structure.

55. The Council has previously set out its strategy to reduce headcount as

part of the transformation of services alongside reducing its resource base to manage the constraints on public expenditure. During 2011/12, chief officers have considered and supported voluntary severance applications where there is a clear case for the release of those employees. These actions have supported in-year expenditure reductions and budget saving proposals for 2012/13. Unlike previous years the budget savings are shown without the impact of any costs of severance with this cost shown separately at a council wide level. An amount of £700,000 has been included to cover these costs in 2012/13.

56. When reviewing the financial standing of the Council, it is also necessary

to consider the level of financial risk inherent in the revenue and capital budgets. In recognition of the importance of understanding the implications of budget options, chief officers were again required to assess the residual risk and achievability of each new financial pressure and saving proposal submitted. The service risk assessment was supplemented with a corporate moderation exercise that considered the submissions with reference to the current Corporate Plan and Corporate Risk Register.

57. The outcome of this exercise can be seen in Appendices 4 and 5 where

the risk assessments are set against the new pressure submissions and individual saving proposals. The analysis shows that there are some residual risks that remain and will need to be managed either at an operational level or as part of the review of the Corporate Risk Register when reported to the Executive and Corporate Management Board.

58. These significant residual risk items together with their mitigations are

described in the relevant service paragraphs but in summary are:

• Continuing demographic demand for social care services if trendlines vary significantly from the anticipated position.

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• Necessity to deliver cashable net savings from transformation particularly where significant residual risks have been indicated. These include commissioning and procurement, business administration, highways and commercial waste collection redesign and vehicle fleet reduction.

• Total quantum of savings to be achieved from waste management

through reduced residual waste disposed to landfill.

• Ability to effect the closure of Cae Glas residential home in a timely manner linked to the transfer of residents, where appropriate to a new home operated through a partnership arrangement.

• Requirement to provide significant levels of specialist advice to

support transformation projects within constrained resources. 59. In addition, other general risks to be managed include the:

• Actual financial impact of the new pay and grading model when fully implemented.

• Service impact of the continuing reduction in headcount expected

over the medium term.

• Ability to react to new service demands such as homelessness as the new arrangements signalled in the current CSR are implemented.

• Concern that the cost to the Council of services delivered in

collaboration with others is not clearly identified.

• Management of the results of the 2011 Census as they begin to feed into the RSG formula datasets.

• Accumulative effect of resources needed to finance the School

Organisation Plan (SOP).

• Level of additional borrowing undertaken in previous years and proposed will require more revenue resources to be diverted for capital financing in future years.

• Capital schemes that are approved on the basis of generating

savings, increasing income, or capital receipts but which fail to do so will also increase pressure on the revenue budget.

• Management of the arrangements for the Council’s exit from the

current Asylum Seeker contract. 60. Care will continue to be required to ensure that the significant changes to

business processes do not impact on the financial control environment in a negative manner. To assist with this, chief officers will be required to complete Internal Control Assurance Statements on a six monthly basis rather than annually as has previously been the case prior to 2011/12.

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Service Implications of the Revenue Budget 61. In compiling the budget for 2012/13 the Executive recognises that the

economy faces significant challenges with the general public still experiencing severe financial pressures. Consequently this budget proposal has sought to protect services, safeguard the Cardiff economy where possible and also to be mindful of the impact on Council Tax payers.

62. The Chancellor’s 2011 Autumn Budget Statement made it clear that the

previously announced pay freeze would be maintained throughout 2012 and although Local Government has its own pay negotiation arrangements, this budget proposal has been predicated on the basis of a nil pay award for any of its employees.

63. Following the successful ballot outcome in respect of Single Status and

the subsequent signing of the Collective Agreement on 30 January 2012, this budget allows for the cost of the implementation of the new pay and grading model. However, the details as to how individual service areas will be impacted by the new grades are still being finalised and so the service area budgets will be adjusted at a later date. The exception to this is individual school budgets where the figures have been included in order to reflect the delegated nature of these budgets and to calculate the required protection percentage. The balance of funding is shown within Corporate Management at this stage.

64. Increases in the overall employee budget for the second instalment of the

impact of the revaluation of the Local Government Pension Scheme of £1.65 million together with funding towards the cost of teachers increments of £816,000 have been included.

65. As in recent years, no allowance for general inflation has been allocated to

service areas. However, research undertaken has identified that budgets should be increased where there is evidence of particular pressures and so inflationary pressures for the following items have been included in the budget.

• Schools out of County Placements • Coroner’s service costs • Fuel increases • Energy costs

66. Utility prices continue to be volatile and a significant amount of analysis

together with a review of information provided by our purchasing partner has been undertaken to support the figures in this budget proposal. An additional amount of £640,000 based on the full year effect of the October 2011 change together with estimates of price increases due in April and October 2012 has been included in the budget. The earmarked reserve set aside in 2010/11 has been partially used to smooth the increase required with the remainder available to assist further should actual price increases exceed the budgeted amount. Carbon Reduction Commitment Scheme payments will commence in 2012/13 but no additional budget has

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been allowed which is supported by the expectation that the Council’s requirement to purchase allowances will not exceed the base budget provision of £600,000.

67. A list of posts created or deleted as part of the budget proposals is shown

in Appendix 8. The Appendix shows that there will be a net reduction of 53.5 full time equivalent (fte) posts overall made up of the deletion of 113.9 ftes and the creation of 60.4 ftes. The proposal assumes that the post deletions will result from:

Reason Fte

Supported voluntary severance 42.1 Vacant posts 13.8 Redeployment 18.0 Various/ to be confirmed 40.0 Total number of deleted posts 113.9

68. Of the 60.4 fte posts created across the Council, the significant additions

include six new positions in Adult Services; nine extra Children’s social workers, eight new community sweepers; ten extra school attendance officers and five new customer service representatives in Connect to Cardiff.

69. In addition a significant reduction in the employee budget for 2012/13 is as

a result of transformation activities that commenced in 2011/12 with the full year effect occurring in the following year. The number of fte posts affected from these activities amount to 112.1 and have been achieved through:

Project Reduction in ftes

Management Structures (Tier 3 and 4) 52.8 Assessment and Care Management 17.0 Business administration 28.0 Parks restructure 9.0 Information and Performance Management 1.3 ICT restructure 4.0 Total reduction in ftes 112.1

70. The Equality Act 2010 places a general duty on Cardiff Council to

eliminate unlawful discrimination and promote equality according to the nine “equality characteristics”. To comply with this duty, chief officers undertook equality risk assessments for their saving and financial pressure submissions. Following moderation by the Council’s Equality team, these assessments have informed the budget setting process. One of the outcomes agreed as part of the initial impact screening exercise was to forward the equality impact assessment to the Cardiff and Vale Equality and Human Rights Network.

71. This budget proposal does not include an allowance for a general increase

in fees and charges. Chief Officers were advised that they should consider the particular circumstances for which they charge for their services and

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reflect any changes in their savings proposals. The list of proposed revisions to fees and charges in 2012/13 is shown in Appendix 9.

72. The savings proposals that have been accepted include areas of income

growth potential that will generate an additional £882,000. This is against the backdrop of an increasingly difficult economic climate. The introduction of Pay & Display parking measures into Butetown is anticipated to generate an additional £450,000 income from June 2012. A drive to increase the income potential of the Monmouth suite at the conference centre at East Moors Road is anticipated to generate an additional income of £35,000. Opportunities have been taken to increase the income by £31,000 arising from charging for Section 278 activities and an additional income of £10,000 as a result of Road Safety audits. The final phase of a planned three year increase of charges at Rover Way and Shirenewton Gypsy sites will yield an additional £107,000. Corporate Services have also identified further opportunities in charging staff time to grants, outside bodies and external projects which yield an additional £71,000 of income.

73. The Parks & Sport service has reviewed charges within their remit and

identified an additional £178,000 that can be generated. This covers areas such as Pontcanna Caravan Park (£73,000), Heath Park (£59,000), Allotments (£7,000) and outdoor activities. The detailed list of the proposals in respect of outdoor activities can be found in Appendix 9(c).

74. In addition, as part of the Transformation Programme some areas being

reviewed may potentially lead to changes in charges or policy. Currently this applies to venues such as Cardiff Castle but may apply elsewhere as the year continues.

75. Whilst recognising the difficult economic conditions, it is important that the

Council reacts quickly and appropriately to changing events. To aid this, it is recommended that the Council continues to delegate the responsibility to the appropriate chief officer the ability to introduce and amend prices as and when needed. This decision will be taken in conjunction with the Chief Corporate Services and Section 151 Officer and the Executive Member for Finance and Service Delivery. Where appropriate a report will be placed before the Executive within a reasonable timescale of the decision.

76. The capital financing budget reflects both the repayment of principal and

interest on loans for capital expenditure together with generation of interest from short-term investment of surplus cash. For 2012/13 this has required an additional £1.733 million of which £600,000 is in respect of the capital financing charges for the new pay and grading scheme. Recent years have seen a significant reduction in the potential to achieve income from investments as a result of extremely low rates. In arriving at the budget for 2012/13 an estimated average interest rate of 1% from investments has been assumed.

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77. The following paragraphs provide a commentary on significant areas of change within the budget. The overall changes to service area budgets between 2011/12 and 2012/13 are shown in Appendix 10.

Adult Services 78. Increased resources of £2.655 million have been provided in the budget.

This includes £1.3 million to meet both contractual fee increases and pressures from private sector providers, particularly in relation to residential and nursing home care, together with £1.1 million to reflect demographic pressures. In addition, growth has been provided to enhance the Occupational Therapy and the Cardiff Alcohol & Drug Team employee resources amounting to £245,000 while additional funding of £10,000 has been committed to VEST transport provision.

79. Savings amounting to £2.4 million including £1.2 million from

transformation projects have been accepted. The redesign of the Assessment & Care Management service which resulted in a change in the skill mix required will generate savings of £665,000 while changes to management and administration structures that commenced in 2011/12 will result in further savings of £214,000. Reviews of high cost care packages across all services is expected to produce savings of £200,000.

80. The budget to be released as a result of the proposed closure of Cae Glas

residential home stands at £400,000. In addition the revised contract arrangements with Hafod Homes that were approved by the Executive in 2009 included a level of occupancy guarantee payments. The timeframe for these payments has now ended and so the budget of £835,000 is no longer needed.

Children’s Services 81. The financial pressures that continue to be evident in this service area

have been recognised in this budget proposal with the allocation of an additional £1.9 million. Growth of £377,000 has also been included to increase capacity in the Intake & Assessment service through providing for eight social workers, one Duty Manager and three business support officers. Increased costs of Residence Order and Special Guardianship allowances require an additional £200,000 while increased demand for services for young homeless people has been recognised with growth of £35,000. The budget includes funding for two posts to provide enhanced support for the Local Safeguarding Children Board of £75,000 while £70,000 has been allowed for commissioning family support services for fathers in relation to a previous Council motion. Overall, therefore this budget provides total growth of £2.66 million.

82. Savings amounting to £468,000 have been accepted of which £355,000

relates to transformation including projects to increase the number of in-house foster carers (£141,000) and to access lower cost of placements for looked after children through collaborative frameworks (£159,000). Other savings will be achieved through changes to the arrangement for provision of accommodation and support for care leavers following the ending of

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current contracts in 2011/12 (£63,000). Also, reduced demand for financial support for children in families without recourse to public funds will save £50,000.

City Development 83. Savings of £537,000 have been accepted of which £426,000 will be

achieved through transformation projects including commissioning and procurement (£130,000), management structures (£249,000) and business administration (£37,000). Proposals to increase income by charging for Section 278 works and for preparing for public events are expected to generate £41,000 while reductions in overhead related expenditure will save £20,000. The deletion of a vacant Sustainability Officer post and the reduction in budgeted hours for a Planning Officer post will provide the balance of savings accepted.

84. Additional resources of £527,000 have been provided for a variety of

identified pressures. 85. These include funding for Cardiff & Co amounting to £200,000 following

the reduction in the contribution from the Harbour Authority; £60,000 towards the continued development of the Local Development Plan; £60,000 to commence preparatory work for the Community Infrastructure Levy (CIL): £57,000 to replace unachievable income budgets and also funding of £50,000 to support the previously agreed International Sports Village (ISV) pool arrangements.

86. In addition, the budget includes £50,000 which through the Source Cardiff

Initiative will provide assistance to enhance the ability of local businesses to bid for and win procurement contracts together with £50,000 to consider the Council’s response to the Green Deal by developing a project focusing on green, sustainable homes.

City Management 87. Financial pressure bids amounting to £334,000 have been accepted in this

budget including £92,000 to ensure that the Cardiff Museum project has a sustainable funding base; £50,000 as a contribution to the development of a Contemporary Art Community Interest Company and £37,000 to support exhibitions in St. David’s Hall. Funding of £120,000 has been allocated to enable events support for St. David’s Day, Mardi Gras, Speedway, Cardiff 10K and Ice Hockey Development to be part of the service area budget rather than Corporate Initiatives as has previously been the case.

88. In addition, resources have been included to offset historically

unachievable income budgets of £165,000 across the service area. 89. Savings amounting to £1.35 million have been accepted including £1.26

million from transformation projects. These projects have identified savings through smarter commissioning and procurement of £150,000 and through restructuring of management and business administration amounting to £200,000 and £44,000 respectively. Changes to fees and

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charges within parks and sports will produce an additional £178,000 while the extension to pay and display arrangements into Mount Stuart Square, West Bute Street, Bute Street, Trade Street and Canal Parade will generate a further £450,000.

90. The remainder of the transformation savings relate to the redesign of

significant elements of the service such as Parks, Outdoor Leisure Management and Commercial Development.

91. In addition, savings will also be achieved through realigning various

employee resources at the New Theatre (£27,000), Flatholm Island (£19,000) and enforcement activity within Transport & Traffic Management (£41,000).

City Services 92. The budget provides £440,000 for the full year effect of the implementation

of the Waste Strategy (January 2011 EBM) together with the balance of funding of £35,000 for new mechanical sweepers included in the 2011/12 budget. Resources have also been provided for the effect of Central Government’s increase in the rate of landfill tax (£547,000), a shortfall in third party waste income (£250,000) and alignment of NDR budgets (£27,000).

93. In addition, financial pressures amounting to £1.9 million have been

included in the budget. These include £825,000 for the post sorting of residual waste disposed of at Household Waste Recycling Centres; £100,000 to improve the resilience of the Winter maintenance budget as a result of the Council’s Snow Plan and £140,000 to install cameras in refuse vehicles in compliance with Improvement notices from the Health & Safety Executive. Provision of £225,000 has been made to cover the increased costs of agency workers as a result of new regulations while the high demand for community focussed cleansing services has been recognised with the inclusion of an additional £170,000.

94. Additional funds have been provided to invest in the highways network as

described in paragraph 126 and the revenue budget increase of £400,000 is shown within this service.

95. Savings of £2.836 million have been accepted of which £1.414 million

relates to transformation including projects to redesign the Highway service (£250,000); introduce further efficiency improvements to the Materials Recycling Facility (MRF) operations (£95,000), improve value from commissioning and procurement (£224,000) and restructure of management and business administration (£40,000). The full year effect of the waste schedules introduced in September 2011 will save a further £376,000. In addition, as a result of a favourable shift in the external waste disposal market, efficiency savings of £315,000 will be achieved, while the redesign of commercial collection rounds will save £54,000.

96. The reduction in Landfill Tax payable as a result of increased diversion of

waste through composting and recycling will save £1.292 million. In

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addition, the recycling product markets have consistently strengthened with the expectation that additional income of £130,000 will be generated by the MRF. The extent of these reductions present a cumulative risk to the budget being achieved and so will need particular attention as part of the monitoring arrangements.

Communities 97. Additional resources of £735,000 have been allocated in this budget in

respect of the following significant items. The national amendments to the Housing Benefit Scheme together with the prevailing economic conditions are likely to result in further pressure on homelessness budgets and £250,000 has been provided for this purpose. Additional funding of £200,000 to assist the combating of crime and anti-social behaviour through the Community Safety Partnership at neighbourhood Management level has also been included. This will allow extra spending on alley gating and partnership projects such as “Operation Mistletoe”. Neighbourhood (Adult Community) Learning schemes have previously been funded extensively by the WG through a specific grant. However, the eligibility criteria, curriculum coverage and the quantum of grant itself is to change over the medium term. In order that the Council can continue to provide courses to non government priority learners, an additional budget of £200,000 has been created to support a new fee and curriculum strategy. Extra resources of £35,000 to allow an increase in the provision of Play through the medium of Welsh has been included in recognition of a previous scrutiny report.

98. Savings amounting to £1.88 million have been accepted of which £1.564

million relate to transformation activities. These include projects to restructure management and business administration arrangements saving £493,000 and £333,000 respectively while redesign of significant elements of the service as set out in Appendix 5 is expected to produce savings of £718,000. Of this sum, £367,000 relates to Neighbourhood Learning which reflects new ways of working and efficiencies that will result in a reduction in management and administration posts without impacting on frontline services.

99. In addition, savings amounting to £97,000 will be found from minor

adjustments to the opening arrangements of several leisure and community facilities as a result of patterns of low usage at those times while the transfer of the advice service from Bridge Street to City Hall will deliver savings of £25,000. The third year of the planned rent increase at the Gypsy and Traveller sites will generate £107,000. Minor restructuring within Partnership Support & Resources together with savings in overheads at Local Training Enterprise Centres will contribute a further £64,000 towards the savings target.

Corporate Management 100. Savings amounting to £140,000 have been accepted including £59,000

from Corporate Initiatives and £50,000 from a review of management overheads while the balance of £31,000 is achieved through a reduction in

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the Community Facilities & Innovations grant schemes. These grant schemes were not committed beyond 2011/12 and so the new cycle of grants will not be affected by the expectations of current recipients of grants. In addition, savings from the second Wave of transformation programmes amounting to £200,000 have been logged against this service initially although will be moved to other areas once actual proposals have been agreed.

101. Additional resources have been provided in respect of increases in the

Fire Service Levy (£190,000) and Coroner’s costs (£50,000) together with £20,000 to support the Tafwyl Welsh Language Festival. The Council’s approach to resourcing Phase 2 of the Central Business District as set out in paragraphs 128 to 130 has also been included within this service area (£500,000). The budget for this service also includes a further £1.2 million for investment in transformation as described in paragraph 123 later in the report.

102. Within the Corporate Initiatives budget for 2012/13, an amount of

£350,000 has been set aside for expenditure connected with the Olympics.

103. As described in paragraph 63, the detailed analysis of the impact of the

new pay and grading scheme on service areas has not yet been finalised and so the budget increase of £1.33 million has been included in the budget for this service until being reallocated at a later date.

Corporate Services 104. Savings of £701,000 have been accepted including £512,000 from

transformation activities. This includes commissioning & procurement (£224,000) information & performance management (£150,000), management structures (£107,000) and business administration (£31,000). In addition, residual savings of £189,000 will be achieved through increased income (£71,000), reduction in overhead expenditure (£60,000), a staffing restructure within Democratic Services (£26,000) and alignment of employee budgets with actual hours worked by a number of individuals.

105. Additional resources of £751,000 have been accepted of which £274,000

is required to fund the Council election in May 2012 while a further £27,000 is needed to enable the Council to comply with new regulations in respect of refreshing Postal Voter details. The increasing demand for legal advice as the Council undertakes an increasing number of complex procurements has been recognised with the inclusion of £50,000 for additional legal resources. The budget has also been increased by £90,000 to reflect unachievable income streams including Local Land Charges.

106. Paragraph 133 set out the Council’s direction on investment in new

technology via the Enterprise Architecture framework and the revenue increase of £400,000 is reflected in the budget for Corporate Services.

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Education 107. Savings of £961,000 have been accepted of which £408,000 relates to

transformation including projects to restructure management and business administration saving £97,000 and £261,000 respectively together with improved value from commissioning and procurement amounting to £50,000. Other savings include the deletion of three Achievement Leader posts without significant impact on the Post Inspection Action Plan together with reductions of a further three posts within Management & Support resulting in a total saving of £300,000. The realignment of the Youth Service management arrangements to reflect combined neighbourhood areas will produce savings of £33,000 while the merger of the Traveller’s Education team with the Minority Ethnic Achievement team has enabled efficiencies of £50,000 to be realised.

108. Following a similar proposal in 2011/12, the budget for school redundancy

payments is to be reduced by a further £100,000. This will serve to encourage schools to work more closely with Council protocols particularly in support of redeployment arrangements.

109. The budget makes specific inflation allowances for the increasing cost of

the independent sector (SEN) provision (£122,000) and business rates (£146,000) while shortfalls in income as a result of loss of tenants at the Friary Centre has been recognised with temporary additional funding of £153,000. Increases in employee costs for the new pay and grading scheme relating to school based staff (£870,000), towards teachers increments (£816,000) and pension contributions for non teaching employees (£289,000) have also been included in this budget proposal.

110. Following the growth included in the 2011/12 budget for a new Attendance

Strategy in schools, this budget allows expansion in that initiative by the inclusion of £175,000 with a further sum to be provided in 2013/14. In addition to the recommendations of the Estyn inspection was the need to improve attendance, reduce exclusions, improve behaviour and reduce the number of young people not in education or training and this budget includes £500,000 for this purpose. Funding of £154,000 has also been provided to deal with increased demand for the Specialist Resource Base provision, including Early years, together with £145,000 in respect of the cost of demountable buildings at Cathays and Bishop of Llandaff High Schools.

111. The budget provides for additional general funding for Special & Nursery

Schools of £400,000 and £15,000 respectively while a new budget line of £200,000 to recognise the challenges schools face when pupils change schools during the year has been included. The number of pupils in Cardiff Schools will see a net increase in 2012/13 and consequently £950,000 has been added to the budget. It is planned to use 25% of this figure (and 25% of similar figures over the next two years) to support ICT improvements in schools. The School Budget Forum has been consulted on this proposal and were supportive but keen that actual improvements commenced, being seen in schools during 2012/13. This investment in

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ICT will be in addition to any improvements that will be associated with the Council’s ICT refresh initiative described elsewhere in this report.

Shared Services 112. Savings amounting to £2.9 million have been accepted of which £2.85

million relates to transformation projects. These include changes to management and business administration structures saving £38,000 and £109,000 respectively, together with restructuring savings amounting to £277,000 within ICT and the Centralised Transport Service. However, the major elements of the transformation savings will be achieved through commissioning and procurement on transport related activities (£1.3 million); facilities management (£170,000), ICT (£108,000) and external printing (£50,000). This level of reduction presents a cumulative risk to the savings being achieved and so will need to be monitored closely through the Programme and Portfolio governance arrangements. In addition, service redesign of facilities management is expected to achieve savings of £762,000 while new forms of advertising will generate an additional £45,000.

113. The £41,000 balance of the savings results from the dis-continuation of

the shared business continuity server room due to the expiry of the current arrangements and as the model no longer fits with the Council’s business needs. Although this does not significantly affect the Council’s current business continuity position, it is an area that will need to be monitored as part of the approved Risk Register.

114. Additional resources of £1.1 million have been included of which £500,000

relates to the cost of the first phase of the ICT refresh initiative as set out in paragraphs 131 to 132. Increased school transport costs relating mainly to the School Organisation Plan has required an additional £436,000 while increased demands on the Connect to Cardiff service has led to the need for an additional five customer service representatives at a cost of £100,000.

115. The budget also recognises the increase in fuel prices suffered by this

service and has included £200,000 for this purpose while unachievable income of £31,000 from research and survey work has been written out.

Transformation 116. The Budget Strategy Report approved by the Executive on 14th July 2011

outlined the Council's approach to transformation and recognised the important role the Transformation Programme continues to have on the Council's finances. There are seven programmes, each with clear objectives and mandates to deliver both cashable and non-cashable benefits for the Council over the long term. These programmes are:

Citizen Focussed Service Redesign Land and Buildings Commissioning and Procurement

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Shared Services People and Leadership Enabling Technology Solutions 117. The transformation approach is continuing at pace and current indications

as set out in the Month 8 Monitoring Report are that the £8.7 million savings included in the 2011/12 budget will be largely achieved. The 2012/13 budget includes a further £10.2 million of transformation savings, the majority of which relate to the full year effect of savings achieved in the current year or to further phases of continuing Wave 1 projects. At this stage only a limited saving of £200,000 has been assumed in relation to the next phase of Wave 2 projects with these being developed during 2012/13 and providing opportunities for savings in future years. A summary of the transformation savings included in the budget is set out in the following table while further detail linking these to service areas is shown in Appendix 6.

Transformation Programme Budget Savings

£000s Commissioning and Procurement 3,313 Service Redesign 3,830 Shared Services 2,073 Citizen Focussed 756 Wave 2 200 Total Transformation Savings 10,172

118. The above figures shown across service areas are set out in Appendix 6.

While the details of the savings are included in the service area savings proposals are shown in Appendix 5 to this report. The ability to release savings through the transformation process has enabled service areas to minimise the alternative, residual savings required in order to meet their savings target. This has been a major feature of the budget process with £10.2 million (71%) of the accepted budget savings relating to transformation as compared with £4.2 million (29%) from alternative, residual proposals. All chief officers have been fully engaged in identifying and supporting the opportunities for transformation savings in their areas and this has enabled a shared understanding and ownership, minimising any risk of duplication with residual budget saving proposals. The inclusion of the transformation as part of the overall service area savings proposals will also provide transparency and clarity for scrutiny and other consultative forums.

119. The commissioning and procurement proposals include savings of £1.282

million in relation to vehicle and passenger transport costs. This represents a significant risk to achievement of the savings in this area and will require close monitoring and support. Other commissioning and procurement savings include £315,000 through efficiency improvements on waste disposal activities, £224,000 primarily from the review and

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implementation of the highways and waste materials category management plan and £224,000 from a review of commissioning and procurement arrangements within Corporate Services. Savings of £300,000 are also proposed in both Adult and Children's Services, the saving in Children's Services focussed mainly on commissioning arrangements for looked after children agency placements and reducing external fostering costs through an increase in internal placements.

120. The service redesign proposals include £2.553 million of full year effects

relating to savings proposals that were implemented in 2011/12. This is mainly in respect of Tier 3 and Tier 4 management savings and is reflected in the savings proposals across all service areas. It also includes £665,000 for the full year effect of assessment and care management savings within Adult Services and £376,000 in relation to the implementation of new waste management schedules in City Services. New proposals to be implemented in 2012/13 include £450,000 of additional income from pay and display parking measures within Civil Parking Enforcement which provides further scope to support eligible Council expenditure in relation to traffic and transportation costs. Other new proposals include £250,000 from a service redesign project for Highways, £178,000 from a review of fees and charges across the Parks and Sport Service in City Management and £95,000 from efficiency improvements to operations at the MRF in City Services.

121. The Shared Services proposals also include full year effects relating to

savings that were implemented in 2011/12. These amount to £376,000 and relate to a reduction in posts supporting business administration across the Council. In addition, further new savings of £632,000 in relation to business administration have also been proposed by service areas for 2012/13. The most significant saving however relates to Facilities Management with the centralisation of this function offering opportunities for economies of scale and other efficiencies amounting to £762,000. A saving of £113,000 is also proposed from a restructuring of posts within the Central Transport Service.

122. The citizen focussed savings are all reflected in the savings proposals of

the Communities service area. This includes a saving of £367,000 in relation to Neighbourhood Learning, reflecting new ways of working and efficiencies which will result in a reduction in management and administration posts without impacting on frontline services. Savings are also proposed in relation to redesign of services within the Communities service area with £78,000 proposed in relation to the Benefits Service and a further £273,000 across the service area as a whole.

123. The budget also includes additional resources to support investment in the

Transformation Programme, providing the necessary funding and impetus for projects that will release savings both in 2012/13 and in future years. This includes the infrastructure and governance arrangements necessary to ensure benefit release including knowledge transfer from external resources. In 2012/13 the revenue budget provides an additional £1.2 million for this purpose of which £450,000 will remain available to support a legacy structure in future years providing internal support for continuous

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improvement across the Council. After taking into account this additional funding the overall expenditure base for Transformation in 2012/13 is £4.8 million of which £684,000 is funded directly from service area budgets, £400,000 via the HRA and £50,000 as a recharge to capital. This compares with expenditure funding of £4.6 million in 2011/12 which includes £1.2 million from earmarked reserves which will no longer be available to support expenditure in 2012/13. Expenditure in 2011/12 is currently forecast to exceed the available funding by £463,000 and this is reflected in the Month 8 Monitoring Report.

124. The Capital Programme also includes resources to support transformation

including enterprise architecture which will provide investment in technology and essential architecture allowing the Council to meet the requirements of the Transformation Programme and improve service delivery. Other items in the Capital Programme which support transformation include Citizen Hubs, the 'Our Space' office accommodation review and the new vehicle maintenance depot.

Medium Term Policy Initiatives 125. In preparing the budget the Council has considered service pressures in

both 2012/13 and in the medium term. The following paragraphs highlight key areas where a holistic approach to the funding of these pressures has been taken covering both capital and revenue in respect of the paragraphs listed below.

• Highways Policy and Highway Asset Management Plan 126. A review of the Highways Asset Management Plan was included as a

separate report at the February 2012 Executive Business Meeting. This report identifies an investment strategy to provide additional revenue and capital funding for footways and carriageways. The profile of funding identified has been included in the pressures bids for this year, the MTFP and the Capital Programme. These allocations, together with existing budgets, will by 2016/17 provide annual budgets of £6.9 million to support the highways network at a steady state.

127. The WG is also making additional funding available for Councils to deliver

significant upfront investment in highways infrastructure. This funding will be in the form of revenue support for Council borrowing and could result in further capital investment over a three year period of £14 million. A business case needs to be submitted to WG in February and approved in March, therefore no assumptions have been included in the Capital Programme at this stage.

• Central Business District Phase 2 128. The Executive at its meeting on the 8 December outlined its plans for

Phase 1 of the Central Business District (CBD). This report also identified further development opportunities as part of a Phase 2 of the CBD including the possible location for an International Conference and Convention Centre (ICCC).

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129. The revenue budget for 2012/13 includes an allocation of £500,000 in

respect of CBD Phase 2. The MTFP includes further allocations of the same amount in the following two financial years. These amounts will over the three year period total £3 million which can be used to further develop the ICCC proposals. From 2015/16 the base budget allocation will be used to support the capital charges arising from the Council’s Capital Programme contribution to the ICCC of £15 million.

130. The quantum of the Council contribution required will be determined by the

actual costs of CBD Phase 2 and the availability of other funding. In addition to the resources identified as part of the MTFP, the Council will look to maximise the value of its land holdings and secure funding and other competitive advantages as part of its designation as an Enterprise Zone. In addition it will seek developer contributions through mechanisms such as the CIL and the potential implementation of Tax Increment Finance.

• ICT Refresh 131. The need to refresh the Council's existing ICT infrastructure within both

the General Fund and the HRA has been identified and a three year programme of funding proposed with initial allocations for 2012/13 and 2013/14 being supplemented by the Capital Programme. The scope of the ICT refresh programme covers the replacement of storage servers, IT on desktops and distributed network switches.

132. The initial funding will be targeted at three key areas; replacing the

equipment at highest risk of failure prioritised by business impact; ensuring that the major business continuity risks are mitigated and replacing aging software. These steps will produce additional performance as well as reliability benefits. Only parts of the infrastructure can be improved in this year with the full replacement cycle being achieved by 2014/15 with an annual allocation of £1.8 million.

Enterprise Architecture 133. The Council has been defining its ICT enterprise architecture to ensure

that it can provide a platform that is fit for purpose today and delivers a robust foundation for change. As part of this it has also identified a range of new, modern technologies that will enable the Council to radically transform its operations. Provision has also been made to fully extend and exploit those strategic investments that have previously been made. The investment also brings the opportunity to consolidate and retire older technologies with the benefit of reducing ongoing running costs. The Capital Programme for the General Fund and the HRA includes a programme of funding to achieve this transformation and the revenue budget includes a pressure to meet the maintenance and licence costs of putting in place the essential architecture framework and capability, together with the necessary ICT to deliver the transformation projects.

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Medium Term Financial Plan 134. The following table sets out, as far as possible, the financial challenges

facing the Council over the next four years. It draws on the Chancellor’s Autumn Budget Statement and the WG's subsequent budget.

135. It is evident from the table that anticipated resources are unlikely to cover

emerging financial pressures. The funding shortfall identified at the foot of the table will therefore need to be addressed through a combination of transformation and service area savings, use of reserves and potential Council Tax increases.

Medium Term Financial Plan

Budget Element 2012/13 2013/14 2014/15 2015/16 £000 £000 £000 £000

Adjusted base budget b/f 534,240 545,631 569,887 572,252Employee costs 5,366 10,750 10,300 9,600Unavoidable commitments 7,248 12,211 9,289 7,022Specific inflationary pressures 1,012 960 860 960Fire levy and precepts 190 335 342 348Financial pressures accepted 2012/13 11,954 Accepted savings 2012/13 (14,379) Savings required to finance previous years shortfall (18,426) (16,492)Total Expenditure 545,631 569,887 572,252 573,690Financed by:- Aggregate External Finance 400,981 408,125 412,424 416,548Improvement Agreement Grant 2,437 2,437 2,437 2,437Concessionary Fares 11,700 11,700 11,700 11,700Contributions from Reserves 1,314 Council Tax at 2012/13 rate 129,199 129,199 129,199 129,199Total Financing 545,631 551,461 555,760 559,884Shortfall to be met from savings / use of reserves / Council Tax increase 18,426 16,492 13,806

Future Funding 136. Local Government has received an indicative three year settlement from

the WG for the years 2012/13 to 2014/15. This had made the Council's medium term funding position clearer and the plan reflects indicative AEF figures for 2013/14 and 2014/15. It should be noted however that indicative funding is subject to change and can be affected by a number of factors including population fluctuations and the use of floor funding mechanisms. The output from the 2011 national census is likely to begin to flow through into Revenue Support Grant (RSG) datasets from 2013/14 onwards but it has not been possible to anticipate any impact at this stage. A further note of caution is that if Government proposed savings in other areas of its budget are not achieved, it is possible that the AEF figures above could be reduced. There is also the risk of distribution changes to the formula which could adversely affect future AEF figures for Cardiff.

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137. The paragraph above refers to the general grant funding that the Council receives from the WG. In addition to this, the Council also receives a significant amount of grant income to fund specific services and the outlook in respect of these grants is unclear at present. In an effort to provide greater flexibility and to reduce the administrative burden on local government, the WG has expressed its intention to transfer specific grants into the RSG where possible. Whilst this is helpful, there is a risk that upon transfer, the overall quantum and/or the distribution mechanism of the grant will be altered. Particular concerns in respect of the potential future treatment of the Learning Disability Resettlement and Post 16 Grants have been identified. There is also a risk that remaining specific grants could reduce or fall out altogether.

138. Given the difficulties in pre-empting any changes to future specific grant

allocations the MTFP includes a general provision of £200,000 each year to address grant fall out. This is in recognition that there are likely to be grant reductions in future years in respect of activities which the Council may decide to continue and for which core funding will therefore need to be identified.

139. The use of reserves to support the budget creates a resource gap that

must be filled in the following year. This is because reserve funding can be used only once. Care has been taken in the 2012/13 budget and later years of the MTFP to avoid a large impact in this regard.

Future Expenditure 140. Commitments arising from the 2012/13 budget are included in the MTFP

but these are the only service improvement items that are assumed after 2012/13. Undoubtedly, there will be other issues that arise, such as the introduction of the education consortia, welfare reforms and impact of the changes in the HRA Subsidy system on the General Fund. These are likely to impact on the MTFP but as yet the position is still unclear and therefore cannot be quantified. In addition the Council is in the process of procuring organic and residual waste solutions and the impact of these on the MTFP will need to be closely monitored.

141. The effect of decisions taken in respect of the Capital Programme are

included in the plan, both in terms of capital financing implications and increased operational costs. Cardiff's capital grant allocation decreased by 6.7% in 2012/13 and this was in addition to a decrease of 19.1% in 2011/12 and a further reduction of 11.6% is forecast in 2013/14. The Council has identified the additional unsupported borrowing levels which are required to fund the Capital Programme. Given the reducing allocations from the WG there is pressure on the Council to increase its level of unsupported borrowing. This then increases the monies the Council has to allocate within the MTFP for capital financing and reduces its flexibility.

142. Reduced capital resources may have revenue implications in the medium

term, including maintenance costs as a result of reduced annual sums for asset renewal and the potential workload implications of a limited Capital

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Programme. These issues will need to be monitored but at present the plan includes provision for additional direct revenue financing (DRF).

143. The demographic challenges facing Cardiff are the main reason for the

above average settlement that the Council received from the WG in respect of 2012/13. These pressures are set to continue over the medium term particularly in the areas of social care and special educational needs where an increase in both the level and complexity of demand is anticipated. Pupil numbers are also expected to increase over the medium term. These ongoing pressures are reflected in the MTFP.

144. As in last year’s budget the WG has protected social care and education

at a level of 1% above the WG's funding allocation from Central Government. They have also made clear that Local Authorities will be expected to honour this level of protection in setting their own budgets for the ISB and social services for 2012/13 to 2013/14 and for the ISB only in 2014/15.

145. The protection required is set out in the following table:

146. Recognition of the demographic pressures outlined above means it is

likely that the Council would achieve the required element of protection over the next two years. However, as the protected areas account for well over half of the Council's budget, the task of balancing the funding shortfall identified above becomes concentrated on remaining services.

147. Inflation levels are currently running well above the Bank of England's 2%

target. In line with policy in recent years, service areas will be expected to absorb the impact of price inflation within their existing resource base except in instances deemed to be truly exceptional. Inflation is very difficult to predict in the current economic climate, however the plan includes estimated provisions for energy, NDR and fee increases within Adults Services.

148. The MTFP also includes the anticipated future funding requirements

following the implementation of Single Status in 2012/13. This includes a provision in respect of estimated level of increments within the new pay and grading structure, although financial risks will remain in respect of the appeals process.

149. The Chancellor in his Autumn Statement last year expressed his intention

following the end of the current pay freeze to set public sector pay awards at an average of 1% for the following two years. However, Local Government pay is a matter for collective bargaining between the national employers and trade unions through the National Joint Council. As it is not possible to pre-empt this bargaining process, the pay awards within the MTFP reflect the Chancellor's Autumn Statement. These percentages are

2012/13 2013/14 2014/15 WG budget allocation from Central Government +0.58% +1.08% 0.27%

Education / Social Care Protection Required +1.58% +2.08% +1.27%

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estimates which aim to balance the general message of restraint regarding public sector pay awards with preparedness from a budgeting perspective.

150. The Council's Pension Fund is reviewed every three years and the MTFP

reflects the annual increases in employer's contributions recommended by the Actuary to address the Pension Fund deficit. An exercise, involving the eight Welsh local government pension funds has been set up as part of the Compact arrangements between the WG and local government. An outline business case is to be completed by September 2012 which will determine whether or not there is a case to change the number of Pension Funds in Wales. Should any changes be agreed it is unlikely that savings will feed into council budgets until the 2016 valuation exercise.

Housing Revenue Account 151. The Housing Revenue Account (HRA) is a ring-fenced account which

records income and expenditure in relation to Council housing. The Local Government and Housing Act 1989 places a statutory duty on local authorities to maintain a separate account for the costs associated with the management and maintenance of Council dwellings. The ring fencing of the account means that local authorities may not subsidise any costs relating to Council housing from the General Fund (i.e. from Council Tax or from the Revenue Support Grant).

152. The main expenditure items within the account include maintenance and

repair costs, management costs (including rent collection, housing allocations, and property and estate management) and capital financing charges on the HRA’s outstanding loan debt.

153. The major income streams include Council house rents and service

charges. 154. The 2012/13 Final Determination received from the WG on 1 February

2012 provides for a guideline rent for Cardiff Council of £75.46 per week in 2012/13. This level of guideline rent means an increase for Cardiff tenants of £3.85 per week based on the 49 week collection period. This equates to an increase in actual rents of 4.92%, as compared to the all Wales increase of 4.93%.

155. In setting the Determination and in its calculation of HRA Subsidy payable,

the WG makes the assumption that local authorities will increase rents in line with the guideline increases. If rents are set at a level below the guideline increase there will be a direct loss of income to the HRA as the assumed level of rental income in the subsidy calculation will remain unchanged.

156. Tenants were consulted on the proposed rent increases at the Tenants

Consultative Panel on 8 February and there were no representations made at the meeting.

157. The detailed proposals for changes to the HRA charges which can be

found in Appendix 9(b) include:

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• Increases in the service charges for Council tenants and hostels will

be in line with inflation or at a level that covers costs. • An increase in the leaseholder management fee of 1.88%.

158. Other factors which make up the budget proposal include the following main items:

• Provision is made for the estimated employee cost implications of the

Single Status Agreement. • There is a standstill budget for housing repairs in 2012/13. • The DRF budget for capital expenditure assumes a contribution of

£3.286 million in 2012/13 and this includes HRA funding for the Willcox House refurbishment costs and to the Enterprise Architecture arrangement.

• An increase in capital financing costs relating to additional borrowing levels.

• The HRA contribution towards the estimated costs of the Transformation Programmes together with the technology refresh and share of ongoing Enterprise Architecture costs.

159. The proposed 2012/13 budget is shown in Appendix 11. 160. Although not impacting on the 2012/13 HRA budget, there are a number of

significant developments which will influence future budget setting. 161. There is a commitment by the Council to create new public and private

housing across the city. This will be part of a Partnering Scheme which will use a number of existing HRA owned sites but also involve an appropriation of land from the General Fund to the HRA. It should be noted that whilst the current HRA Subsidy system is in place, such an appropriation is considered to be financially neutral to the HRA.

162. The building of significant numbers of additional Council owned housing

will require consideration of an agreement with the WG as to the possibility of maintaining any new dwellings outside the HRA Subsidy system. This is due to the redistributive effects of the existing Subsidy system whereby any additional rental income would result in an increase in the Subsidy payable. This is particularly important as it is intended that the proposed scheme would be partly funded by undertaking additional borrowing. The Council will work with the WG over the coming months to establish such an agreement, supplemented by a robust financial business case to ensure the affordability of the proposals.

163. Effective from April 2012, the system of council housing finance in

England will change to a self financing system. This is an arrangement whereby Local Authorities who were previously paying over a net subsidy to Central Government have been required to take on additional debt at an equivalent level. Those who were in receipt of subsidy from Central Government have reduced debt levels under the new self financing system. The WG is currently considering options for change in Wales and

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any outcome and future developments for Welsh housing authorities would require close monitoring.

164. The proposed changes to the Welfare System under the Universal Credit

Scheme and the transfer of related functions to the Department for Works and Pensions will have significant implications both for the Council and for the HRA. The detail of this is currently being developed and a phased approach is anticipated commencing in late 2013 with the proposed completion date of late 2017.

School Organisation Plan 165. The School Organisation Plan (SOP) relates to the significant programme

of capital investment which aims to reorganise school places in Cardiff thereby using resources more effectively and ensuring that schools are fit for purpose.

166. The Plan is designed to be self-funding and the particular projects to be

undertaken are included in the Council’s Capital Programme. 167. The Consolidated Financial Model for the SOP brings together the Fast

Track, Welsh Medium, Cardiff East and Whitchurch proposals. The Consolidated Financial Model includes an updated projection for both capital expenditure and capital funding over the life of the plan and can be summarised as follows.

School Organisation Plan Funding

£m Expenditure

£m Capital Investment Programme 176.9 Capital Receipts 12.9 Capital Grants 61.2 Section 106 Contributions 0.7 General Fund Capital Resources 17.6 Direct Revenue Financing 14.3 Additional Borrowing 70.2 Total 176.9 176.9

168. The Capital Investment Programme within the model totals £176.9million.

Schemes are first included on the basis of Initial Development Appraisals (IDA) adjusted for construction cost inflation over the life of the model. An additional contingency sum of 10% is added which is decreased as proposals progress and costs become more certain. The expenditure projections are regularly monitored and updated along with the project funding sources to identify changes in either the value or timing of expenditure.

169. As part of the 21st Century Schools Programme the Council submitted an

updated Band A funding bid to the WG in November 2011. An indicative Capital Investment Programme of £137.3 million has been approved, subject to the successful submission of detailed business cases. Of the £137.3 million, 50% would be grant funded by the WG, and would be in addition to the £176.9 million currently projected within the SOP model.

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The Council’s match-funding element is included in the £176.9 million. The Council is awaiting further guidance from the WG on the timetable and requirements for the submission of individual business cases. When individual business cases are approved the amounts will be added into Consolidated Financial Model.

170. Funding for the model comes from a number of sources. Where proposals

include the disposal of school land, the capital receipt is reinvested into the SOP. The model relies upon £12.9 million of capital receipts, including those already received. Funding is also secured as capital grants from the WG, with a total of £61.2 million in the form of scheme specific grants such as Ty Gwyn, Flying Start Grant for early years schemes, and Schools Building Improvement Grant (SBIG). The Council has been successful in bidding for a Tranche 3 Transitional Grant from the WG, which bridges the gap between the previous SBIG regime, and the start of 21st Century funding in 2014/15. The Tranche 3 Grant approval is £35.6 million, which will help fund the new build at St Teilos High School and some associated schemes in the East of Cardiff.

171. Finance of £17.6 million from the Council’s own Capital Programme and

£0.7 million Section 106 Contributions have been allocated. The balance of funding is provided by DRF of £14.3 million, and additional borrowing of £70.2 million. The capital charges arising from this additional borrowing are funded from revenue release savings as described below.

172. In addition the SOP includes revenue expenditure of £26.7 million in

connection with organisational restructure costs attached to the proposals. These include project management costs, additional costs incurred by schools which are closing or are in transition, and pump priming for the establishment of new educational provision. The risks around organisational restructure costs increasing should be noted and officers regularly review the potential financial implications attached to the proposals.

173. A significant source of funding for capital and revenue expenditure is from

revenue release savings which come from a number of sources and are identified below.

• Facilities Management Savings - Based on the facilities

management element of the budget for closing schools that is no longer needed – for example lump sums for school heating, lighting, building maintenance.

• Falling Pupil Number Savings – the amounts identified as no longer allocated to schools as delegated budgets reduce as a result of the historic falls in pupil numbers.

• Efficiency Savings - an annual efficiency saving of 0.5% has been captured against the teaching element of all delegated schools budgets for a period of five years from 2009/10 to 2013/14.

174. The overall Consolidated Financial model while self-funding still represents a significant financial exposure for the Council and the

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following capital and revenue key risks have been identified and are continually reviewed:

• Changing scope of works following the IDA as schemes progress

through feasibility studies and design.

• The management of cost over-runs and fluctuating construction cost inflation which may lead to expenditure exceeding contingency levels.

• Potential for underachievement of capital receipts within the current climate, failure to obtain planning consent or changes in Council policy in respect of land sale.

• Potential for the WG funding levels to be reduced or changed.

• The potential for revenue costs of closing schools and opening others to be higher than estimated.

• The potential for the underachievement of revenue savings.

• The additional risks attached to taking an incremental approach to the implementation of the schools organisational proposals.

175. A further challenge attached to the Consolidated Financial Model is the

cash flow impact in the timing of both capital and revenue expenditure and income. A reserve has been established for the SOP and this is used to manage these cash flow fluctuations. Delays to implementing SOP proposals have resulted in significant slippage to the Capital Programme which in the short term increases the balance on the reserve. Projected movements on the reserve are shown within Appendix 12 and summarised in Appendix 7(a).

Municipal Organic Waste Treatment Procurement 176. At its Business Meeting on 6 October 2011, the Executive was presented

with a report entitled ‘Municipal Organic Waste Treatment: Procurement’. 177. Appended to that report was an Outline Business Case for proceeding

with the procurement of an Organic Waste Treatment solution. The WG has already committed financial support to the procurement process, and would potentially provide further grant funding depending on the technical solution put forward.

178. The Outline Business Case included a section on affordability. The results

of this affordability modelling are summarised below. This is in the context of an evaluation period of just under nineteen years representing the four years to procure and build the facility and the anticipated fifteen year contract period.

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Total Nominal Costs

£M

Total NPV as at April

2011 £M

2016/17 (1st full yr)

£M

Cardiff Budget (indexed from 2011/12) 52.1 31.8 2.6

Business as Usual (BAU) Cost net of SWMG*1 inc. LAS*2 Fines

134.8 72.1 5.5

Reference Project Net of SWMG*1 and WG AD*3 grants Total

123.1 67.1 5.0

Comparison of Reference Project to BAU -11.7 -5.0 -0.5

Affordability Gap (Reference Project versus Council Budget)

71.0 35.3 2.4

*1Sustainable Waste Management Grant *2Landfill Allowance Scheme *3Anaerobic Digestion 179. The Reference Project option has the lowest expected cost both in

nominal terms (£123.1 million, net of WG funding) and in Net Present Value (NPV) terms (£67.1 million). This results in a saving of £11.7 million in nominal terms and £5 million in NPV terms when compared to the Business as Usual (BAU) option. The Project Budget when compared against the BAU option results in an affordability gap of £71 million.

180. The Executive approved the Outline Business Case and noted that the

financial implications of the Affordability Envelope would need to be agreed through the Council’s budget setting processes. The procurement timetable outlined in this report was for the preferred bidder to be selected in December 2013 and the facility to become operational in December 2015. The Affordability Envelope has been modelled against worst case sensitivities. The February 2012 Executive report in respect of Waste Reduction and Recycling Impacts on Treatment and Residual Waste Contract and Wasteflows highlights that revised tonnages are currently lower than those included in the Outline Business Case. The implication of this revised tonnage would be beneficial as it would lower the indicative cost of the Reference Case.

181. Appendix 17 reproduces the Exempt Financial Implications from the

October 2011 report which defined the Affordability Envelope, and quantified the indicative costs. This should be considered to be the upper limit for expenditure, with the Competitive Dialogue process expected to provide a more economic solution.

182. The report recommends that Full Council approve the Affordability

Envelope which sets out the funding for the Organic Waste Treatment

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solution up to a maximum level, this is also a WG requirement. The Final Business Case (planned for November 2013) will confirm the full economic cost of the preferred bid, and will be reported to a future meeting of Full Council.

Civil Parking Enforcement 183. Following approval from the WG to designate Cardiff as a “Civil

Enforcement Area”, within which parking violations and eventually also certain moving traffic offences, including bus lane enforcement, would be enforced, Civil Parking Enforcement (CPE) was introduced on 5 July 2010.

184. The advantage to the Council in taking these powers is that it has been

given direct day-to-day control of the deployment of enforcement staff across the highway network thus allowing targeted enforcement in support of transportation strategies and more effective responses to local needs.

185. CPE is a ring-fenced account. The income generated from car parking

fees is used to fund the operational costs and to subsidise the enforcement service. Any surplus or deficit will be transferred to a Parking Reserve and can only be used for specific purposes such as supporting transportation services, parking and highway or road improvement projects in accordance with Section 55 of the Road Traffic Regulations Act 1984.

186. The anticipated operating surplus for 2011/12 is £1.533 million. When this

and the eligible expenditure for the current year are applied to the brought forward figure the balance in the Parking Reserve at 31 March 2012 is expected to be £773,000.

187. For 2012/13 income from car parking fees, residents permits, disabled

bays and enforcement fines is forecast to be £6.526 million. Operating costs, which include employees and the cost of the enforcement service, is estimated to be £3.613 million which leaves a net trading surplus of £2.913 million.

188. Eligible expenditure totals £3.060 million and includes a contribution

towards the net cost of the Pentwyn park & ride facility, a planned upgrade of surface car parks, the provision of the City Centre Mobility Assistance Service and a contribution towards the costs of transportation services, parking and highway or road improvement projects. This includes £450,000 relating to a budget saving in City Management which reflects the introduction of additional pay and display parking measures in 2012/13. After taking this into account the balance on the reserve at 31 March 2013 will be £626,000. This is forecast to increase to £942,000 by 31 March 2014 and £1.185 million by 31 March 2015. The current and planned position on the reserve is set out in Appendix 13.

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Activities inherited from Cardiff Bay Development Corporation including Harbour Authority 189. The Council agreed to take on the role of the Cardiff Harbour Authority in

April 2000 following the winding up of Cardiff Bay Development Corporation (CBDC). The functions and responsibilities of the Harbour Authority are detailed in the Agreement made between the Council and CBDC (now the Welsh Government) under Section 165 of the Local Government Planning and Land Act 1980. The funding required to discharge these obligations is provided by a specific grant received from the WG. This funding and any income generated are ring fenced.

190. The revisions to the Section 165 Agreement approved in April 2007

ensured that a sufficient funding level was made available to the Harbour Authority to meet the liabilities under the agreement and any additional duties relating to the Cardiff Bay Barrage Act 1993.

191. Further revisions were approved in April 2011 following negotiations

between the Council and the WG to agree a new three year budget for the period 2011/12 to 2013/14. As part of these negotiations the WG indicated their expectation that the level of funding allocated for this function would be significantly reduced.

192. Following a critical examination of the future resource requirements a fixed

cost and asset renewal budget incorporating substantial savings was agreed with the WG which identified a total funding requirement of £7.870 million for 2012/13.

Harbour Authority Funding Requirement 2012/13

Harbour Authority £000sFixed Cost budget 7,300 Asset Renewal 570 Total 7,870

193. The fixed cost budget of £7.3 million covers staff costs and overheads,

barrage maintenance, environmental monitoring, community liaison and leisure. This represents a reduction of £200,000 compared to the 2011/12 budget and a reduction of £2.21 million (23.2%) compared to the 2010/11 budget. In addition to the fixed cost budget the Harbour Authority also raises income primarily from car parking and mooring fees which contribute to the overall budget available for this service. The funding agreement includes income targets and in 2012/13 this is £550,000.

194. The new agreement also includes the sharing of financial risk and/or

benefit which means the WG and the Harbour Authority will now share any over or under spend against the Fixed Cost budget on a 50/50 basis.

195. The Asset Renewal budget of £570,000 includes provision for the renewal

and replacement of a range of items. The more significant of these include the renewal of timber handrails at Roald Dahl Plas, coping works at the Environmental Quay and the painting of the barrage gantry crane.

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196. The new agreement also provided that the balance of the Enhancement

Fund at the end of 2010/11 will pass to the Council to cover the additional risk of any over spend on fixed costs and to fund future agreed Harbour Authority projects. This was to be renamed the Harbour Project and Contingency Fund and the balance at the end of 2010/11 was agreed at £2.813 million. An amount of £2.0 million is already committed to fund the development of an indoor surfing facility at the Cardiff International White Water Centre as approved by the Executive on 8 December 2011.

Capital Expenditure Pressures 197. As expected, pressure on public finances has resulted in a reduction in

both specific capital grants and in general capital funding. 198. The Council will in 2012/13 receive £15.6 million in grant and borrowing

approval from the WG in order to determine its own spending priorities for capital items. This is a reduction of 6.7% from 2011/12 and is part of an anticipated reduction in Welsh Government general capital resources of 40% over the period 2011/12 to 2013/14. This has necessitated a review of recurring annual capital allocations and existing commitments. This will require service areas to continue to secure better value, better outcomes and only undertake priority schemes. Despite this, the level of support provided by the WG is barely sufficient to meet current annual expenditure commitments. Any expenditure above this level to meet the need for investment can only come from undertaking additional borrowing, using other Council resources or from specific capital grants.

199. Set against the demand for these capital resources and the current

economic climate, tough choices are required. Expenditure pressures include:-

• Ensuring that existing property is fit to deliver service improvements,

by addressing the maintenance backlog, disabled access and health and safety improvements of over £110 million.

• Meeting the aspirations of service areas to transform existing assets or create new capital assets in order to improve service delivery in accordance with the Corporate Plan.

• The need to maintain the highway and associated infrastructure such as roads, traffic signals, bridges, street lighting and address the backlog of repairs.

• The need to create new transportation infrastructure in the City.

• The cost of dealing with residual waste and the post closure commitments of the Lamby Way landfill site.

• Meeting the employment and Capital City aspirations of Cardiff citizens and the region for capital assets.

• Meeting the Welsh Housing Quality Standard (WHQS), regenerating local neighbourhoods and keeping the time citizens have to wait for disabled adaptations to the minimum possible.

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• The need to invest in order to meet the Council’s Transformation Programme and meet future funding challenges and deliver service improvement.

200. Given the pressures for investment and limited resources, an appraisal

process and scoring criteria was used in order prioritise new capital schemes submitted by service areas alongside considerations of affordability. Criteria included:-

• Link to Corporate Plan outcomes – including transformation. • Physical and Prudential Code criteria – links to Asset Management

Plans and options appraisal. • Financial Criteria – ratio of costs to benefits including match funding. • Other – sustainability and equality impact.

201. To assist the Executive in compiling this proposal the outcome of the appraisal process was passed to them for consideration.

Capital Position Statement 202. The following paragraphs set out the context within which decisions on the

level of capital expenditure should be taken. 203. The Prudential Code of Borrowing includes indicators that must be used

and factors which are to be taken into account by the Council when setting its borrowing limits. These indicators are set out in paragraphs 239 to 266 inclusive. Members should note that these paragraphs also include local indicators derived by the Council to show the impact of additional borrowing proposed in this report.

204. Whilst there are currently no national restrictions on the level of borrowing,

such measures remain a risk to the Capital Programme and investment aspirations.

205. Over the five years of the Capital Programme some £9.5 million in capital

receipts are assumed for the General Fund Programme. In addition receipts have been identified for the School Organisation Plan (£12 million), rationalisation of office space (£5 million) and other schemes such as the new Central Transport Depot where receipts are assumed to offset expenditure and minimise levels of borrowing.

206. The property market and the types of properties to be sold remains

challenging and subject to prevailing market circumstances and securing interest from third parties. Accordingly it remains volatile, uncertain and is expected to remain so for the foreseeable future. It is imperative that where a property is identified for disposal, that it is actually declared surplus and disposed of, it is not to have significant revenue impact in terms of increasing the Council’s level of borrowing.

207. The earlier paragraph in respect of the HRA identified the Council’s plans

to transfer land holdings from the General Fund to the HRA. A number of sites have initially been identified for transfer to take place either later this

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financial year or early in 2012/13 subject to determining a transparent value and planning briefs where relevant. Under current financial arrangements, such a land appropriation is deemed to be financially beneficial for the General Fund and net neutral to the HRA and this Budget Report makes assumptions to this effect. Further options for land appropriation will continue to be sought.

208. The release of some sites for disposal will require initial capital investment

to enhance value or relocate Council services resulting in additional risk and cost to the affordability of the Capital Programme.

209. A number of initiatives are available to assist in securing receipts such as

the Council’s Pilot Fund and new WG guidelines that allow a percentage of future disposal proceeds to be used to pay for costs incurred in disposal. It is essential that close monitoring of the capital receipts position continues as the consequences of a significant shortfall in not only the level but the timing of the receipt would result in the need for further additional borrowing if the proposed programme is to be fully implemented.

Capital Resources 2012/13 – 2016/17 210. The resources required for the 2012/13 Capital Programme total £125.8

million, of which £35.4 million relates to resources to support schemes deemed to pay for themselves over a period of time and £13 million for public housing schemes which includes additional borrowing towards developing new Council housing following achievement of the WHQS. Over the life of the Capital Programme and particularly beyond 2012/13 the level of external grants included are based on assumptions due to the lack of data being available from grant funding bodies. This clearly causes difficulty in longer term planning which is a necessity when considering capital investment decisions.

211. Resources forecast to be available, including the necessary level of

additional borrowing to support the general level of investment, are detailed in Appendix 14. Between 2012/13 and 2016/17, £40 million of additional borrowing is required to meet the new commitments set out in the General Fund programme. The £100 million of additional borrowing in respect of schemes deemed to pay for themselves over a period of time is additional to this.

212. Under the Local Government Borrowing Initiative (LGBI), WG is to provide

additional revenue resources to enable the use of the borrowing powers of local authorities to undertake additional investment in relation to highway improvements. The revenue funding will be made available over a twenty two year period in order to support the costs of borrowing, with the amounts each year being allocated on an all Wales basis £4 million in 2012/13, £8 million in 2013/14 and £12 million in 2014/15.

213. The revenue funding will be allocated to local authorities by means of an

in-year grant in 2012-13, but then being included in the RSG thereafter. For 2012/13, the revenue grant figure for Cardiff is £349,000.

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214. The investment can be used either to improve highway asset condition or

functionality e.g. resurfacing, reducing congestion, network resilience. Whilst precise details are not known, it is expected that the allocation to Cardiff could support additional borrowing and capital investment of around £14 million over a three year period. The figures will be added to the Capital Programme once the business case has been approved.

Capital Programme 2012/13 – 2016/17 215. The inclusion of schemes in the Capital Programme has been profiled in

accordance with technical advice relating to regulatory processes, timetables and work plans. However, with such an extensive programme there remains a residual risk that expenditure may slip between years. Service areas must ensure they notify Corporate Services of slippage at an early stage to ensure opportunities for best use of available resources by bringing forward schemes within the programme in accordance with Members’ wishes. This continues to be recognised as an issue by the Wales Audit Office in their Annual Improvement Report.

216. The proposed Capital Programme is summarised in the following table

and paragraphs. Capital Programme Indicative Indicative Indicative Indicative 2012/13 2013/14 2014/15 2015/16 2016/17 £000 £000 £000 £000 £000Annual Sums 16,150 15,000 13,665 14,480 14,600 On going schemes 24,965 21,033 8,936 3,290 2,500New schemes 6,235 6,320 5,650 2,030 500Schemes funded by external grants and contributions 30,033 25,940 41,728 32,138 19,977

Invest to Save schemes 35,416 25,444 16,025 19,272 3,826Total General Fund 112,799 93,737 86,004 71,210 41,403Public Housing 13,035 15,200 17,800 19,600 19,600 Total Capital Programme 125,834 108,937 103,804 90,810 61,003 217. Further details of the programme are shown in Appendix 15 and cover the

following areas:- 218. Provision for Annual Sums including:-

• Investment of over £23 million in the next five years on Disabled Facilities Grants, maintaining the significant investment that the Council has previously undertaken resulting in reduced waiting times. Adaptations to public housing will be met from the Housing Capital Programme in 2012/13 following the achievement of the WHQS.

• Investment to improve Council buildings, prioritised in the medium term to achieve efficient floor space utilisation particularly in County Hall and Willcox House yielding financial benefits in the longer term as part of the Our Space project.

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• Investment in footways and carriageways in both revenue and capital budgets over the next five years, building up to a level of £6.9 million that would allow the service area to keep the condition of carriageways and footways at an improved level.

• Traffic management including junction and pedestrian improvements aimed at addressing strategic pressures, utilising available grant match funding as well as local schemes to improve pedestrian safety.

219. Provision for on going schemes including:-

• Over £6 million primarily for the refurbishment of Eastern Leisure Centre and improvement of other leisure facilities throughout the city where possible including Fairwater.

• Contribution to a new community hub as part of the Maelfa Centre regeneration scheme to kick start significant investment.

• Over £24 million towards a new transport interchange, public realm improvements and other sustainable travel initiatives. As part of the first phase of the CBD, this aims to create economic regeneration bringing new jobs, growth and other benefits to citizens, business and visitors.

• A new vehicle maintenance depot at Brindley Road, allowing the rationalisation of existing depot sites throughout the City.

220. Provision for new schemes including:-

• Redevelopment of the Cardiff Business and Technology Centre at Senghennydd Road into an innovation centre in partnership with the WG and Cardiff University, with a contribution of £5 million to supplement bids for grant funding.

• Development of citizen hubs. • Development of sporting hubs and other sporting infrastructure. • Replacing existing ICT and investment in enhancing existing and

using new ICT technologies allowing the Council to deliver the Transformation Programme and improve service delivery. In respect of Enterprise Architecture, the profiling put forward may be considered further to ensure an effective roadmap is put in place.

• Provision of additional match funding for external grant bids in order to develop further phases of Cardiff Museum.

221. Funding may also be required when determining future years Capital

Programmes for Insole Court, subject to the outcome of future bids for grant finance.

222. Provision for schemes funded by grants and contributions including:-

• European and WG grants to complete regeneration schemes in Butetown and flood alleviation schemes in Whitchurch.

• Harbour Authority funding for asset renewal and funding for a new Flow Rider facility to supplement the leisure offering at the Cardiff International Whitewater Centre.

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• Assumptions about 21st Century schools grant funding for a variety of schemes subject to submission and approval of detailed business cases.

223. As mentioned previously in this report, no assumptions have been made at this stage in relation to additional support from the WG towards the cost of highway improvements.

Planning Gain (Section 106) and Other Contributions 224. The potential for financing capital schemes from these categories has

become far more uncertain due to reductions in development. However, there remains a significant level of existing contributions which service areas must focus on utilising within relevant timescales in accordance with the terms and conditions of the agreements. There may be a legitimate reason to delay expenditure in anticipation of combining future contributions in order to make an effective scheme. However it is important to note any revised guidelines in aggregating contributions and that delays in expenditure could mean a developer potentially seeking the return of an existing contribution.

225. The following table summarises the balances of existing Section 106 and

other contributions projected to be held by the Council at 1 April 2012 on a service area basis, together with a planned profile of spend of these over future years. Future amounts receivable in respect of Section 106 balances have not been included given current economic conditions and the unpredictability of developer contributions.

Service Areas Projected

Balance at April 2012

£000

Planned Use

2012/13

£000

Planned Use

2013/14

£000

Planned Use

2014/15 and beyond

£000 Traffic & Transportation 2,598 1,352 633 613 Parks 2,822 1,919 837 66 Planning 381 357 2 22 Housing 1,402 723 0 679 Schools 398 398 0 0 Libraries 100 100 0 0 Business Development 86 86 0 0 Other 750 392 358 0 Total 8,537 5,327 1,830 1,380

226. Some of the significant schemes included in the profile above for 2012/13

are: • Transportation – modifications to the bridge at Hailey Park to include

a footpath and cycle path; (£175,000); road improvements including traffic signals in Penylan (£190,000); public transport and telematics improvements in Butetown (£197,000), and a range of other telematics and transportation schemes together with bus services across the city.

• Parks – Canal Park (£404,000); Parc Coed y Nant (£200,000); Ferry Road Nature Reserve (£161,000); Grangemoor Park (£139,000) and

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Caerau Open Spaces (£128,000). It is essential that the service area devotes adequate resources to ensure that such schemes can be completed.

• Planning – Community facilities and Public realm schemes. • Housing – completion of the Single Assessment Centre scheme. • Schools – SOP schemes at Llanishen and Pentwyn. • Libraries – completion of the Radyr Library scheme. • Other – Infrastructure and public realm improvements linked to the

ISV and the balance of a Section 136 agreement received following the construction of Lloyd George Avenue.

227. The Community Infrastructure Levy (CIL) regulations came into force in

April 2010. CIL is a new system of regulations that allow local authorities in England and Wales to raise funds from developers undertaking new building projects in their area. The money raised can be used to help fund a wide range of “relevant infrastructure” that is needed to support the development of the area. “Relevant Infrastructure” is not clearly defined in the regulations but may include:

• Roads and other transport facilities • Flood defences • Schools and other educational facilities • Medical facilities • Sporting and recreational facilities • Open spaces.

228. To recognise the CIL as a potential source of income for investment,

assumptions have been made beyond October 2015 in Appendix 14 of the Capital Programme. However these are clearly dependant on an updated LDP.

Invest to Save Schemes – Additional borrowing to be repaid from specific resources 229. The programme includes significant borrowing commitments of £100

million for schemes modelled to pay for themselves over a set period of time either from planned revenue resources, savings, income generation or capital receipts. Service areas must repay these loans from these specified resources such as savings or increased income. Accordingly they represent an enhanced financial risk to the Council and the affordability of the revenue budget.

230. New capital schemes to be funded in this way include:-

• Rationalisation of office accommodation to utilise savings in operating costs and property disposals in order to undertake significant investment in County Hall and Willcox House to remove the maintenance backlog and create a modern working environment.

• The Council’s contribution of the development of an ICC as part of Phase 2 of the CBD to be repaid from sums identified in the MTFP over the next few years.

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• Implementation of the Local Authority Mortgage scheme, to be repaid from eventual repayment of initial amount invested.

• Further energy initiatives in relation to wind, solar photovoltaic and replacement of inefficient boilers.

• Investment in Schools ICT to be repaid from amounts identified within schools revenue budgets. This will cover internal infrastructure, cabling and increased bandwidth and wireless connectivity to enhance the virtual learning environment.

231. Expenditure previously approved from additional borrowing intended to be

repaid from specific resources include:- • Contribution to the Cardiff International Whitewater Centre to be

repaid from revenue income. • A repayable loan to Glamorgan County Cricket Club. As part of a

financial restructuring recently agreed with all creditors of the club, the terms of the former loan have been amended to allow for a further deferment in respect of the repayment of principal and interest.

• Autism facility to provide specialist education for children in Cardiff to be repaid from savings achieved through reductions in the use of independent sector provision.

• Provision of a facility to house the Dr Who exhibition at Porth Teigr which will be recouped from visitor ticket sales.

232. In addition to the above the approval of smaller Invest to Save schemes

during the year is delegated to the Chief Corporate Services & Section 151 Officer, and will be conditional upon a satisfactory business case.

Public Housing 233. The proposed 2012/13 Public Housing Programme is £13 million.

Resources will be found from the Major Repair Allowance (MRA) grant of £9.6 million, and £3.3 million of housing revenue reserves including an in-year revenue contribution.

234. The aim of the five year programme is to ensure that Council housing

stock and its surrounding environment meet and sustain the WHQS through implementation of the HRA Business Plan, co-ordinating capital and revenue expenditure and working strategically so that improvements are maximised across mixed tenure estates.

235. Following completion of the WHQS which is expected by December 2012,

plans are also in place to create significant new numbers of public and private houses across the city. A number of existing HRA owned sites have been identified which will enable the Council to continue its commitment to be one of the few authorities UK wide to build new Council homes. A partnership will be formed to deliver new family housing across all tenures over a four year period with the aim of helping to meet the significant housing challenges faced by the City.

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236. As indicated in the section on capital receipts, a number of sites will be appropriated from the General Fund into the HRA in order to be used towards the new Partnering Scheme. Whilst the current subsidy system is in place such an appropriation is deemed financially neutral to the HRA.

237. The building of significant numbers of Council owned houses will require

consideration of maintaining any new dwellings outside of the HRA Subsidy system due to the redistributive effects of the existing system. This is particularly important as any proposals are to be partly funded by undertaking additional borrowing. This will require an application to the WG in order to exclude new dwellings from the Subsidy system and would need to be approved by the Minister. The Council will work with the WG over the coming months to establish such an agreement, supplemented by a robust financial business case ensuring the affordability of the proposals.

238. Effective from April 2012, the system of housing finance in England

changed to a self financing system. This refers to an arrangement where authorities who were paying over a net subsidy to Central Government were required to take on additional debt and those who were receiving subsidy had debt reduced. Options for change in Wales are currently being considered by the WG, the outcome of which could impact on both operational and financial systems of the Council, thus requiring close monitoring of developments.

Capital Prudential Indicators 239. The Council is required to set a number of indicators for the years 2012/13

to 2014/15 to ensure it establishes a prudent, affordable and sustainable Capital Programme. In addition the Council has developed local indicators which are detailed in this report for the period up to 2016/17.

240. The actual capital expenditure incurred in 2010/11 and estimates of capital

expenditure for the current and future years as set out in the programme are as follows:-

Capital Expenditure

2010/11 Actual

£m

2011/12 Estimate

£m

2012/13 Estimate

£m

2013/14 Estimate

£m

2014/15 Estimate

£m General Fund 73 72 113 94 86

HRA 22 24 13 15 18 Total 95 96 126 109 104

241. The programme has been set on the assumption that external grants and

other contributions will be available towards financing capital expenditure. These are subject to bidding processes and change over time and are rarely confirmed or predictable beyond the following year.

242. It is a statutory requirement under Section 33 of the Local Government

Finance Act 1992, for the Council to produce a balanced budget. Section 32 requires a local authority to calculate its budget requirement for each financial year to include the revenue costs that flow from capital financing

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decisions. This, therefore, means that increases in capital expenditure must be limited to a level whereby increases in charges to revenue are affordable within the projected income of the Council for the foreseeable future. This relates to:-

• Increases in interest and principal charges caused by increased

borrowing to finance additional capital expenditure, and • Increases in running costs from new capital projects

243. An estimate of the incremental impact on Band D Council Tax and on the weekly housing rent of the running costs and capital financing costs of new capital investment decisions proposed in this budget based on current gearing levels between central and local taxpayers are as follows:-

244. A key indicator of the affordability of capital investment plans is the ratio of

financing costs to net revenue budget stream which identifies the trend in the cost of capital financing (excluding the running costs of schemes).

245. The definition underlying the ratio of financing costs to net revenue budget

stream includes:-

• Interest payable on borrowing and receivable on investments. • Premia or discounts on rescheduling of debt. • Prudent revenue provision for repayment of past and proposed

capital expenditure paid for by borrowing. • Reimbursement of borrowing costs from service areas in respect of

invest to save schemes.

246. For the General Fund, the net revenue stream is the amount to be met from non-specific Central Government grants and Council Tax, whilst for the HRA it is the amount to be met from subsidy and rent payers.

247. Approved invest to save schemes such as SOP are intended to be net

neutral on the Capital Financing Budget, although there may be short term implications. There are however risks that the level of income/saving

Incremental Impact of New Capital Investment Decisions 2012/13

Estimate £

2013/14 Estimate

£

2014/15 Estimate

£ For the Band D Council Tax 1.13 3.14 5.14

Average Weekly Housing Rent 0.14 0.21 0.55

Ratio of Financing Costs to Net Revenue Budget Stream 2010/11

Actual %

2011/12 Estimate

%

2012/13 Estimate

%

2013/14 Estimate

%

2014/15 Estimate

%

2015/16 Estimate

% General Fund 6.38 6.28 6.36 6.61 6.65 6.87 HRA 14.70 15.25 16.37 16.70 16.89 17.46

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anticipated from such schemes will not materialise and this will need to be closely monitored to ensure that there is no detrimental long term consequence on the Revenue Account.

248. The ratio for the General Fund is estimated to increase from 6.38% in

2010/11 to 6.87% in 2015/16. The HRA ratio increases from 14.70% to 17.46% in 2015/16 as the initial level of additional borrowing feeds into the revenue budget. An increasing ratio indicates that a greater proportion of the Council’s budget is required for capital financing costs over the planned Capital Programme period. This arises from proposals in the Capital Programme as well as the need to ensure a prudent provision in parallel for repayment of debt.

249. It should be noted that these figures include a number of assumptions

such as interest rates, the timing of borrowing decisions and expenditure, the total level of the WG revenue support etc. These variables have long term implications and are extremely uncertain. The trend is that a larger part of the revenue budget is used for capital financing than other service spend, requiring careful monitoring when considering future levels of additional borrowing.

250. Whilst the indicator above is a required ratio, it does not take into account

the fact that some of the Council’s budget is non-controllable, delegated and protected. It also includes investment income which is highly unpredictable, particularly in future years and does not reflect gross capital financing costs for schemes that are undertaken by initial borrowing ultimately to be repaid.

251. Accordingly additional local indicators have been developed and are

shown in the table below for the period up to 2016/17. These local indicators show the capital financing costs of the Council as a percentage of its controllable budget and excludes investment income:-

252. In accordance with the principles of invest to save, the net ratio assumes

that any costs of undertaking additional investment are recovered over time from service areas, capital receipts or other budgets.

253. With invest to save schemes however there is clearly a long term risk

which is why larger schemes require robust monitoring. The gross ratio thus indicates the gross capital financing cost as a percentage of the total base for savings.

254. An increasing ratio indicates that a greater percentage of the budget that

is controllable is required for capital financing costs which are committed in the long term. Accordingly the requirement to meet these additional costs

Capital Financing Costs as percentage of Controllable Budget

2011/12 Estimate

%

2012/13 Estimate

%

2013/14 Estimate

%

2014/15 Estimate

%

2015/16 Estimate

%

2016/17 Estimate

%

Difference 11/12-16/17

% Net 12.85 13.14 13.86 14.02 14.58 14.80 15.18 Gross 14.36 15.80 17.47 18.52 19.21 19.31 34.47

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can only come from future savings or from increases in Council Tax. This clearly limits the scope for additional borrowing in future years and reduces the Council’s overall flexibility when making decisions on the allocation of its revenue resources. Whilst borrowing is increasing it is not considered unaffordable, careful monitoring of these indicators will be required over the life of the Capital Programme.

Prudent Repayment of Capital Expenditure – Annual Minimum Revenue Provision (MRP) Policy Statement 255. Capital expenditure is on assets which have a life expectancy of more

than one year e.g. buildings, vehicles, machinery. Such expenditure is spread over several years so as to try to match the benefits such assets provide over their useful life. The manner of spreading these costs over years is through an annual MRP, the level of which is determined using the WG guidance and the judgement of the Chief Corporate Services & Section 151 Officer.

256. The WG requires that:- “A local authority must calculate for the current

financial year an amount of MRP which it considers to be prudent.” A statement on the Council’s policy for its annual MRP is required to be submitted to full Council for approval before the start of the financial year to which the provision will relate.

257. Accordingly it is proposed that the Council will make provision in its

revenue budgets for the eventual repayment of capital expenditure paid for from borrowing (MRP) as follows:-

• Historic expenditure prior to 1 April 2004 as well as subsequent

supported borrowing approved by the WG is to be provided for on a straight line basis over a 25 year period in order to build up a prudent provision.

• Additional borrowing for a general increase in investment is to be provided for on a straight line basis over a 25 year period or a lower period where a significant level of investment relates to short life assets.

• Any additional expenditure linked to specific schemes e.g. Invest to Save, Schools Organisation Plan etc is to be provided for on a straight line basis over the estimated useful life of assets being created or a shorter period as determined by the Chief Corporate Services & Section 151 Officer.

• No MRP is provided on deposits made under the Local Authority Mortgage Scheme as any such repayment will be used as a capital receipt to reduce the Capital Financing Requirement (CFR).

• Additional borrowing undertaken within the HRA will be provided for on a straight line basis over the estimated useful life of assets being created or a shorter period as determined by the Chief Corporate Services & Section 151 Officer. Historic expenditure prior to 1 April 2004 is provided for at 2% in line with regulations.

• The MRP charged against liabilities under finance leases, or contracts that have the characteristics of finance leases, shall be

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equal to the principal element of the lease repayment, calculated on an annual basis.

258. Any change in the level, timing and method of provision in year is

delegated to the Chief Corporate Services & Section 151 Officer after consideration of affordability and prudence.

Capital Financing Requirement 259. The CFR is the Council’s underlying need to borrow for a capital purpose.

It represents the amount of capital expenditure incurred but not yet paid for through capital receipts, grants and charges to the revenue account via a prudent provision for repayment of capital expenditure. It is capital expenditure incurred historically and ultimately paid for by borrowing money.

260. It is important to note that any financial deficit and liabilities of the HRA are

ultimately liabilities of the Council. 261. The actual CFR as at 31 March 2011 and estimates for current and future

years are:-

262. The CFR for the General Fund will increase over the next three years due

to increasing investment in the Capital Programme which includes increasing levels of additional borrowing for invest to save schemes.

263. The CFR for the Housing Revenue Account is increasing due to additional

borrowing planned towards creating new housing. 264. The Council has at any point in time, a number of cash flows both positive

and negative, and manages its treasury position in terms of its borrowings and investments in accordance with its approved Treasury Management Strategy and practices. External borrowing may arise as a consequence of all the financial transactions of the Council and not simply those arising from capital spending.

265. Net borrowing is compared to the CFR to ensure that over the medium

term the Council is borrowing only for a capital purpose. The Council must ensure that net external borrowing does not, except in the short term, exceed the total CFR in the preceding year plus the estimate of any additional CFR for the current and next two financial years.

Capital Financing Requirement as at 31 March 2011

Actual £m

2012 Estimate

£m

2013 Estimate

£m

2014 Estimate

£m

2015 Estimate

£m General Fund 366 391 416 441 445 HRA 81 87 89 91 96 Total 447 478 505 532 541

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266. The Council complied with this requirement in 2010/11, and as shown in

the table above is forecast to do so for the current and future years. Treasury Management 267. The Council carries out its treasury management activities in accordance

with a code developed for public services in 2009 by the CIPFA. In February 2010, the Council adopted the Code of Practice, set out the policies and objectives of its treasury management activities and adopted the four Clauses of Treasury Management. The Council required the scrutiny of the accounting, audit and commercial issues of its Treasury Management Strategy and practices to be undertaken by the Council’s Audit Panel.

268. During the course of each year, the Council and the Audit Panel receive a

number of reports in relation to the Council’s Treasury Management activities including a strategy at the start of the year, performance reports during the year, a mid year report and an outturn report.

269. A draft of the proposed Treasury Management Strategy was provided to

Audit Panel members and response was received that they were content with the strategy proposed.

Treasury Management Strategy 270. Treasury management involves ensuring cash is available when needed,

investing temporary cash balances and funding the Council’s capital expenditure plans. The following paragraphs set out the integrated Treasury Management Strategy covering borrowing and investments.

271. In undertaking its treasury management activities, the overriding objective

is to minimise the risk of adverse consequences or loss, whilst at the same time not unduly constraining investment returns or unnecessarily incurring interest costs.

272. The Council uses treasury advisors to assist in the Council’s treasury

management activities, however the Council recognises that responsibility for treasury decisions remains with the Council at all times. Sector Treasury Services Ltd also provide a wide range of specialist support and advice, including training, credit updates, forecasts, research, articles and advice on capital finance.

Net External Borrowing Compared to CFR 2010/11

Actual £m

2011/12 Estimate

£m

2012/13 Estimate

£m

2013/14 Estimate

£m

2014/15 Estimate

£m CFR at start of year 423 447 478 505 532 Change in CFR for year 24 31 27 27 9 CFR at end of year 447 478 505 532 541 Net external borrowing 335 357 423 449 458

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273. The Strategy for 2012/13 is based upon the Council’s views on interest rates, supplemented with leading market forecasts provided by the Council’s treasury advisor. The Strategy covers:-

• The treasury position. • Treasury Management Indicators for 2012/13 to 2014/15. • Economic background and prospects for interest rates. • The Borrowing (Debt) Strategy, including policy on borrowing in

advance of need and the choice between internal and external borrowing.

• Debt rescheduling. • Investment Strategy, including security, specified and non-specified

investments. • Other items potentially impacting on Treasury activities.

The Treasury Position 274. The treasury position as at 31 December 2011 is shown in the following

table. 275. Borrowing is predominantly made up of fixed interest rate loans from the

Public Works Loan Board (PWLB) payable on maturity. 276. Investments are primarily fixed term deposits, notice deposit accounts and

money market funds. The cash investment balances fluctuate daily and arise due to the timing of cash flows as well as the existence of required reserves, provisions and other balances.

Principal £m

Avg Rate %

Borrowing - Public Works Loan Board 387.7 5.44 - Market 52.0 4.13 - WG/Other 0.3 0 Total Debt 440.0 5.30

Investments - In House 120.4 1.41 Treasury Management Indicators for 2012/13 – 2014/15 277. The Council must set its Treasury Management indicators for the years

2012/13-2014/15. Appendix 16(b) gives further background in respect of these Prudential Indicators, whilst Appendix 16(c) provides a glossary in respect of treasury terms.

278. The Council must determine and keep under review how much it can

afford to borrow (the “Affordable Borrowing Limit”). It must have regard to the Prudential Code when setting this limit. This requires that capital investment remains within sustainable limits and that the impact upon future Council Tax/Rent levels is acceptable. Whilst termed an “Affordable Borrowing Limit”, the capital plans to be included incorporate those to be financed both by external borrowing and other forms of liability, such as

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credit arrangements. These limits are consistent with the current commitments, existing plans and proposals in this budget report for capital expenditure and financing. From 2012/13, no amounts have been included in respect of other long term liabilities as none are expected. The limit is to be set, on a rolling basis, for the forthcoming year and the following two financial years.

279. It is recommended that the Council approve the following authorised limits

(Statutory limit under Section 3(1) of the Local Government Act 2003) and operational boundaries for the next three years (figures for 2011/12 are for comparison only). The Council is asked to approve these limits and to delegate authority to the Chief Corporate Services & Section 151 Officer, within the limit for any individual year, to effect movement between the separately agreed limits for borrowing and other long term liabilities in accordance with option appraisal and best value.

• Authorised limit for external debt

2011/12 £m

2012/13 £m

2013/14 £m

2014/15 £m

Limit for borrowing 509 541 541 541 Limit for other long term liabilities 10 0 0 0

Limit for external debt 519 541 541 541 280. These limits are consistent with the current commitments, existing plans

and proposals in this budget report for capital expenditure and financing. They are based on the estimated most likely, prudent but not worst case scenario and in addition with sufficient headroom over and above this to allow for operational management. The authorised limit has been set at a constant level of £541 million for 2012/13 to 2014/15 to align with the operational boundary whilst recognising that borrowing may take place earlier than spend. An example of this would be unusual or unexpected cash movements and borrowing in advance for future plans for capital expenditure.

• Operational boundary for external debt 281. The proposed operational boundary for external debt is based on the

same estimates as the authorised limit, but without the additional headroom for unusual and unexpected cash movements, and equates to the level of projected external debt. This is uncertain and clearly subject to the timing of borrowing decisions.

2011/12

£m 2012/13

£m 2013/14

£m 2014/15

£m Boundary for borrowing 440 505 532 541 Boundary for other long term liabilities 0 0 0 0

Boundary for external debt 440 505 532 541

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282. The Council’s actual external debt represented by borrowing at 31 March 2011 was £440 million, with no significant other long term liabilities.

• Upper limit for fixed and variable interest rate exposure 283. Authorised limits for fixed and variable rate exposure net of investments

are as follows. These are consistent with the current commitments, existing plans and proposals for capital expenditure and financing, and are based on the estimated most likely scenario, with sufficient headroom to allow, for example, unusual and unexpected cash movements.

• Upper and lower limits for the maturity structure of fixed rate

borrowing 284. It is also recommended that Council approves upper and lower limits for

the maturity structure of its fixed rate borrowing taking into account the impact of possible rescheduling and new borrowing. This is to guard against a large element of the Council’s debt maturing in a very short space of time.

Maturity structure of borrowing in 2012/13

Upper limit %

Lower limit%

Under 12 months 15 0

12 months and within 24 months 15 0

24 months and within 5 years 45 0

5 years and within 10 years 75 0

10 years and above 100 0 285. A chart showing the maturity profile of debt is shown within the following

borrowing (debt) strategy section. Economic background and prospects for Interest Rates 286. The following table gives the Council’s treasury management advisors’

latest central forecast of interest rates.

2011/12 £m

2012/13 £m

2013/14 £m

2014/15 £m

Upper limit for fixed interest rate exposure:-

Net principal for fixed rate borrowing/investments 480 480 480 480

Upper limit for variable rate exposure:-

Net principal for variable rate borrowing/ investments 90 90 90 90

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Mar-2012

Jun-2012

Sep-2012

Dec-2012

Mar-2013

Mar-2014

Mar-2015

Bank Rate 0.50% 0.50% 0.50% 0.50% 0.50% 1.25% 2.50%5yr PWLB Rate 2.30% 2.30% 2.30% 2.40% 2.50% 2.90% 3.70%10yr PWLB Rate 3.30% 3.30% 3.40% 3.40% 3.50% 4.00% 4.80%25yr PWLB Rate 4.20% 4.20% 4.30% 4.30% 4.40% 4.80% 5.20%50yr PWLB Rate 4.30% 4.30% 4.40% 4.40% 4.50% 4.90% 5.30%

287. The Eurozone debt crisis and measures to tackle the fiscal deficit continue

to have a negative impact on financial markets and growth prospects for the UK and Eurozone. The bank rate has remained unchanged since March 2009. Whilst it is forecast to rise in the latter half of 2013, there is clearly a risk to this forecast if the economic recovery in the UK remains weak or if there are higher inflation expectations. The current low bank rate results in less interest receivable from the Council’s investments and this has already been reflected in the Capital Financing budget over the past few years. As the rate rises, this will have a beneficial impact dependant on available cash balances. Whilst interest on investments remains low, it would be cost effective in the short term to use internal cash balances rather than to undertake external borrowing. However future borrowing costs are forecast to rise as a result of higher level of gilt issuance to service the national debt which would result in higher longer term costs.

288. It should be noted that UK borrowing rates are at historically low levels

due to investor concerns about other sovereign debt. Accordingly the timing of borrowing decisions is important and is covered in the following paragraphs.

Borrowing (Debt) Strategy 289. The Council will manage its debt portfolio on a long-term basis with a high

regard to the effects on future Council Tax payers and citizens as well as current ones. The Council’s Borrowing Strategy for 2012/13 will consider all options to meet the long term aims of:-

• Promoting revenue cost stability to aid financial planning and avoid a

stop-start approach to service delivery although it is recognised that this may have a financial impact.

• Reduction over time in the average rate of interest on Council borrowing.

• Ensuring a balanced maturity profile with an aim to bringing the average maturity of debt closer to 25 years, balanced against the cost of doing so. This is consistent with the Council’s MRP policy and will also allow long term interest rate risk to be effectively measured and managed when considering new borrowing and rescheduling strategies.

• Policy on borrowing in advance of need

290. Whilst it is feasible to undertake borrowing up to three years in advance of need, the Council’s CFR at 31 March 2011 was in excess of the actual

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debt of the Council. This indicates that, at that time, the Council was not borrowing in advance of need or to benefit from the investment of extra sums borrowed. However, if it is felt that by borrowing in advance of need, opportunities exist to lock into favourable long term rates in order to minimise long term costs, then this would be an option that will be considered to finance the approved Capital Programme and future debt maturities after consideration of consequent risks. This is taken into account when setting the affordable borrowing limit.

External versus Internal borrowing 291. Whilst interest rates for borrowing are greater than interest rates for

investment, it makes financial sense to use any internal cash balances in the short term. Reducing the level of investments also has benefits of reducing exposure to credit risk. However, the risk here is that the Council may have to borrow at higher rates when it does need to borrow. Accordingly there is a balance between the short term costs of carrying borrowing against the long term savings of undertaking borrowing when borrowing rates are deemed to be favourable.

292. As can be seen from the forecasts in paragraph 286, interest rates for

borrowing are forecast to increase, however there are a number of risks and the short term revenue implications of undertaking borrowing early are very significant due to the differential in interest rates between internal and external borrowing.

293. The difference between the projected CFR over the next three years and

the level of existing external borrowing is circa £100 million. i.e there will be a requirement to borrow. The financial costs and benefits between internal and external borrowing in 2012/13 will continue to be assessed to determine the means of funding the Council’s long term borrowing needs, subject to cash balances and the impact on the revenue budget. Set out below are two contrasting scenarios:-

• If it were felt that there was a significant risk of a sharp rise in long

and medium term rates, perhaps arising from a greater than expected increase in world economic activity, increasing government debt levels, increased risk of government debt or increases in inflation, then fixed rate borrowing may be undertaken whilst rates were still relatively cheap.

• If there was a significant risk of a sharp fall in rates, due to concerns about economic growth or risk of deflation then long term borrowing would be deferred.

294. Against this background and volatility in the markets, caution will be

adopted in 2012/13. Whilst the Council is mindful to defer any new borrowing to minimise short term costs, borrowing rates are currently attractive. Whilst they are likely to remain low for some time, rates will be monitored closely and a pragmatic approach adopted to changing circumstances and market sentiment.

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295. The Council’s debt maturity profile is shown in the following graph on the assumption that all loans run to their final maturity. However £24 million of the Lender Option Borrower Option loans (LOBOs) are subject to the lender potentially requesting a change in the rate of interest payable every six months, which could trigger early repayment. Options have been considered to reduce short term re-financing risk, however these are not currently deemed financially viable. Longer term options will also be considered to reduce any large repayments in a single year.

Maturity Profile of Debt

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

40000000

45000000

50000000

2012

/13

2014

/15

2016

/17

2018

/19

2020

/21

2022

/23

2024

/25

2026

/27

2028

/29

2030

/31

2032

/33

2034

/35

2036

/37

2038

/39

2040

/41

2042

/43

2044

/45

2046

/47

2048

/49

2050

/51

2052

/53

2054

/55

2056

/57

2058

/59

2060

/61

2062

/63

2064

/65

2066

/67

2068

/69

2070

/71

2072

/73

2074

/75

2076

/77

2078

/79

Year

£

Fixed Period LOBO

Debt Rescheduling 296. Current interest rates on the Council’s existing debt portfolio and the high

penalty rates charged by the PWLB for early debt repayment are unlikely to result in a significant rescheduling of debt. However, opportunities will continue to be reviewed in conjunction with the Council’s Treasury advisors, to determine whether there are any opportunities to

• Generate savings at minimum risk • Help fulfil the borrowing strategy outlined above • Flatten the maturity profile particularly in relation to the risk of LOBOs

being repaid. Investment Strategy • Policy 297. The Council will have regard to the WG Guidance on Investments issued

in 2004 and its subsequent amendments, as well as the 2009 revised CIPFA’s Treasury Management in Public Services Code of Practice and Cross Sectoral Guidance Notes (the CIPFA Treasury Management Code).

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298. All investments must be in sterling and any payments or repayments are also payable only in sterling.

299. The Council’s investment priorities are the security and then liquidity of its

investments. The Council will also aim to achieve the optimum return on its investments commensurate with proper levels of security and liquidity. Given the nature of investments, a trade-off between security, liquidity and yield cannot be avoided, however the level of risk will be contained within the limits set out below and through continual monitoring of treasury activities. The limits are required to be implemented with immediate effect following approval of this Treasury Management Strategy by Council.

300. Investment Instruments identified for use in the financial year are listed

under the ‘Specified’ and ‘Non-Specified’ investment categories. The procedure for determining which categories of such investments may be used and the credit criteria or changes in the criteria used in determining with whom to invest is delegated to the Chief Corporate Services & Section 151 Officer.

• Specified Investments 301. A specified investment is for up to a maximum of one year, not involving

corporate share or loan capital, where the principal sum to be repaid at maturity is the same as the principal sum invested. It is possible that specified investments may comprise up to 100% of the investment portfolio.

Instruments approved for use Minimum Credit Criteria

Debt Management Agency Deposit Facility Assumed

Government Guarantee

Term deposits – UK government and other Local Authorities

Assumed Government Guarantee

*Short term deposits with the Council’s current banking provider n/a

Term deposits – banks and building societies Long Term A /Short Term F1

Term deposits with variable rate and variable maturities up to one year e.g. callable deposits, range accruals and other structured investment products

Long Term A /Short Term F1

Deposits with banks wholly or partly nationalised or where guaranteed by high credit rated (sovereign rating) countries



* This is inserted as a new line in comparison to last financial year to recognise that the Council will always have short term cash balances with its banking provider.

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• Non-Specified Investments 302. These are all other investments not meeting the definition of a specified

investment. 303. In accordance with best practice a maximum upper level is to be set for

non-specified investments. This limit is £90 million.

Instruments approved for use Min Credit Criteria

Max % of total

investments

Max. maturity period

Term deposits with Local Authorities (with maturities in excess of 1 year)


50%

3 Years

Term deposits – banks and building societies (with maturities in excess of 1 year)

Long Term AA- /Short Term F1+ 30%

3 Years

Deposits over one year with banks wholly or partly nationalised institutions where guaranteed by high credit rated (sovereign rating) countries



50% 3 Years

Term deposits with variable rate and variable maturities in excess of 1 year e.g. callable deposits, range accruals and other structured investment products

Long Term AA- /Short Term F1+ 20%

3 Years

*Term deposit with Financial institutions in accordance with the Council’s Local Authority Mortgage Scheme

Long Term A / Short Term F1

Budget approved limit for scheme

5 years

Certificates of Deposit (In-house) Long Term AA- /Short Term F1+

10%

Maximum 3 year duration

UK Government Gilts and Gilt funds (In-house)


40% Maximum 3 year duration

Treasury Bills (In-house) Assumed


40% 6 Months

Commercial Paper (In-house) Long Term AA- /Short Term F1+ 10% Maximum 3

year duration

Corporate Bonds (In-house) Long Term AA- /Short Term F1+ 10% Maximum 3

year duration

Collective Investment Scheme structures - Money Market Funds

AAA Constant NAV 50%

Weighted Average

Maturity 60 days

Other Collective Investment Schemes structures - e.g. enhanced cash funds, Government and Corporate Bond, Gilt or Liquidity Funds and floating rate notes

AAA Variable NAV 20%

Weighted Average

Maturity 3 years

Bonds issued by multilateral development banks, UK Government Guaranteed Institutions

AAA 10% 3 Years

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* This is inserted as a new line in comparison to last financial year to allow the Council to make a deposit in accordance with the Local Authority Mortgage Scheme. 304. Specified and non specified investments allow the use of products such as

Certificates of Deposit, Gilts, Money Market Funds and Treasury Bills to allow diversification of investments and liquidity.

305. The Council will utilise Money Market funds and other collective

investment funds which are credit rated AAA by any of the rating agencies. These are stand-alone pooled investment vehicles which actively invest in a diversified portfolio of products and sectors mainly high grade, short-term money market instruments such as bank deposits, certificates of deposit, government guaranteed bonds, corporate bonds and commercial papers.

• Security 306. Credit, transaction and fraud risk are managed through procedural

requirements and controls. Diversification of approach, investment product, and counterparties are sought where possible, with security as the key priority. The Council uses Fitch Credit ratings as a starting basis for assessment of credit worthiness. Changes in the criteria and decisions with whom to invest are delegated to the Chief Corporate Services & Section 151 Officer. Commercial organisations on the list will have at least the short-term credit rating of F1 and be authorised institutions within the meaning of the Financial Services and Markets Act 2000. The rating F1 is designated as “Highest Credit Quality” and indicates the strongest capacity for timely payment of financial commitments.

307. The aim of the strategy is to generate a list of highly creditworthy

institutions which will enable diversification and avoid concentration of risk. For internally managed investments provided by the private sector, the lending list for direct investment in an organisation is based on the following credit criteria and is to be implemented from the date of this report:-

Fitch Ratings (minimum)

Long Term

Short Term

Viability

Limit £m

Overnight to three months A F1 A- 6 Overnight to one year A F1 A 10 Overnight to three years AA- F1+ AA- 15 UK Part Nationalised Banks Overnight to three years

A F1 n/a 20

308. For internally managed funds the limit for direct investment in any one

group of related companies is £15 million with the exception of part nationalised banks.

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309. Consideration will also be given to investing outside these criteria where governments have a majority interest in the institution or where they have a banking system support package.

310. All credit ratings are monitored regularly through use of the Treasury

Management Advisor’s creditworthiness service. If a downgrade results in the counterparty / investment scheme no longer meeting the Council’s criteria, its further use for new investment will be withdrawn immediately.

311. Where investments are held with a counterparty which falls below the

Council’s approved criteria for new investment, the investments will be reviewed and options to call back funds before the maturity date would be investigated. It should be noted that any early repayment is only at the discretion of the borrower and often at a penalty.

312. Whilst Fitch ratings form the basis of the Council’s criteria, in addition to

this, the Council will have regard to the following when determining with whom to invest:-

• Rating updates provided by treasury advisors in respect of all

three credit rating agencies, as well as Credit Default Swaps, support ratings and other market data.

• Media reports as well as Sovereign credit ratings with the minimum requirement being a Fitch sovereign rating of AA for non UK based institutions.

• The informed judgement of treasury staff and treasury management advisors.

• Financial sector and country exposure.

• The extent to which organisations who do not meet the above criteria, are nationalised (i.e. take on the creditworthiness of the Government itself) or are the subject of Government guarantees on all deposits. In such cases the use of such organisations would be considered only after approval of the Chief Corporate Services & Section 151 Officer and an assessment of the risk of doing so.

313. Treasury staff directly and regularly involved in borrowing and lending

activities are provided access to a wide range of training. This includes seminars and workshops organised by treasury advisors bringing together practitioners from different authorities; seminars organised by CIPFA and other national bodies, regular contact with a client relationship manager as well as their briefing notes and articles. Staff responsible for treasury activity on a day to day basis are AAT qualified and encouraged to undertake a relevant Treasury Management qualification. There is engagement with a wide range of local authority contacts as well as investment providers with whom treasury issues are discussed.

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• Liquidity 314. The Council aims to have sufficient funds to ensure it does not become a

forced borrower for a significant period of time. In determining the maximum periods for which funds may be invested, a balance sheet review is undertaken and multi year capital cash forecasts are undertaken as part of the calculation of Prudential Code indicators.

• Investment Strategy 315. Subject to security, liquidity and prospects for interest rates identified

above, locking into longer term investments will be assessed on merit. The Debt Management Agency Deposit Facility will be used only as a last resort. Dependant on the markets, existing cash balances are likely to be drawn down rather than undertake external borrowing. However this needs to be weighed against the potential for higher longer term interest costs on borrowing.

316. During the course of 2011/12 the Council has opened additional money

market fund accounts to seek additional diversification of investments. Further opportunities for diversification in terms of alternative products and providers will be considered in conjunction with our treasury advisors if necessary during the course of the year. Given the current economic and market conditions, having a range of investment options to place funds with will be essential.

317. With continued volatility in the markets, caution will be adopted in 2012/13

and a pragmatic approach adopted to changing circumstances and market sentiment. Investment returns are likely to remain low and with credit criteria changes delegated to the Chief Corporate Services & Section 151 Officer, this will allow a prompt response to uncertainties that exist in the financial markets. Council will be kept informed of significant changes through the various reports it receives on treasury activities during the course of the year.

Other items potential impacting on Treasury activities 318. As mentioned previously in this report, following changes in England,

options for a review of the Housing Revenue Account Subsidy system in Wales is being considered. Subject to the outcome of the discussions this could potentially have a significant impact on treasury activities, particularly the level of debt.

319. The Local Government Association is currently undertaking studies on the

options for Local Authorities either individually or as consortiums to issue local bonds. This is with a view to looking at alternatives to the PWLB, when looking to borrow funds.

Corporate Property Asset Management 320. Effective asset management is increasingly important given the prevailing

economic climate. Following adverse comments from the External Auditor

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in 2010, corporate ownership of asset management planning across the council has improved but that improvement now needs to be sustained. The recent introduction of Facilities Management as a function with the council will serve to give a client focus to the strategic work undertaken by Corporate property officers.

321. The current Corporate Property Asset Management Plan was approved by

the Executive in 2011 and work to update the plan will be completed following the approval of the 2012/13 budget. This new Plan will then be considered by the Executive later in the year.

322. In addition to the Corporate Asset Management Plan, the Land and

Buildings Transformation Programme is also focussed on the Council’s property assets through the following work streams:

• Our Space Review and rationalisation of office

accommodation which would assist in reducing the backlog of repairs (EBM report on 16 February 2012)

• Operational Property Management

Linked to other programmes and particularly the outcomes of the Citizen Focussed Programme

• Non- Operational Property Management

Review of remainder of property interests (EBM report December 2011 with update due in Spring 2012)

323. The WAO’s Annual Improvement Report for Cardiff was issued in January

2012 and this updates the previous comments in respect of Corporate Property Management and states:

“We have been tracking developments over the past two years and it is clear that significant progress has been made in establishing strong foundations for effective asset management. The Council’s ‘Our Space’ project, for example, sets the clear example of making more efficient use of office accommodation and buildings, and its implementation is supported by improved arrangements for assessing the property requirements of services.”

Budget Framework 324. Under the Budget and Policy Framework Procedure Rules the Council is

able to specify the extent of virement within the budget and the degree of in-year changes. The Council’s Financial Procedure Rules allow virements within the service areas set out as follows:-

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Revenue Up to £50,000 Chief Officer in consultation with Chief

Corporate Services & Section 151 Officer. Between £50,001 - £250,000 Approval of relevant Corporate Director in

consultation with Chief Corporate Services & Section 151 Officer.

Over £250,000 Executive Capital Up to £100,000 Chief Officer in consultation with Chief

Corporate Services & Section 151 Officer. £100,001 - £250,000 Approval of relevant Corporate Director in

consultation with Chief Corporate Services & Section 151 Officer.

Over £250,000 Executive. 325. It is proposed to continue the current policy whereby the Executive has the

authority to vire amounts between service areas of up to £500,000 and, subject to the Chief Corporate Services & Section 151 Officer raising no objection, to use reserves and to commit expenditure in future years up to a total in the year of £1.5 million.

326. In addition to the virements shown above the Chief Corporate Services &

Section 151 Officer will also undertake all necessary technical adjustments to the budgets and accounts during the year and reflect any changes to the accounting structure as a result of management and organisational changes within the Council.

Reasons for Recommendations 327. To enable the Executive to recommend to Council approval of:-

• the revenue and capital budget and to set the Council Tax for 2012/13.

• the budget for the Housing Revenue Account. • the Treasury Management Strategy in accordance with the Local

Government Act 2003 and the Local Authorities (Capital Finance & Accounting)(Wales) Regulations 2003.

• the Prudential Code for Borrowing indicators for 2012/13-2014/15. • the Capital Programme for 2012/13 and indicative programme to

2016/17, delegating to the Chief Corporate Services & Section 151 Officer authority to bring forward or delay schemes within the programme to match resources where necessary.

• the Minimum Revenue Provision Policy for 2012/13. • the Affordability Envelope for the Organic Waste Treatment Solution.

328. To enable the Executive to approve:-

• the level of fees and charges for Council services for 2012/13. • the levels of rent and charges for 2012/13 in respect of Council

Houses, garages and other service charges following the setting by

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the WG of the Housing Revenue Account Subsidy and Item 8 Determinations.

• in principle the appropriation of land between the General Fund and the Housing Revenue Account.

HR Implications 329. The final proposed budgetary position of the Council as outlined in this

report represents a necessary response to the significant challenges to the Council arising from the current economic situation. The proposals contained in this report represent an overall reduction in FTEs required in order to meet the required budgetary savings targets. These reductions will be achieved via a combination of deletion of vacant posts, natural wastage and Voluntary Severance all of which will provide the opportunity to reshape and restructure services to achieve further efficiencies.

330. In the past two financial years the Council has released, on average,

between 300 and 350 employees on the grounds of Voluntary Severance (VS). In the 2012/13 budget proposal however this has reduced to 42.1 ftes (see detail in Appendix 8). Voluntary Severance is only one mechanism used to reduce posts and in total the number of fte posts deleted in relation to this budget proposal is 226. However, this figure is offset by the creation of 60.4 fte posts agreed as part of the budget proposal.

331. In recognition that VS may not be a viable option for all, the Council in July

2010 agreed an Employee Support Framework designed to proactively support the people implications of the Council's Transformation Programme, in addition to helping address potential budget difficulties. Consequently, staff at risk by virtue of these proposals for whom VS is not a viable or available option will be supported by a number of interrelated measures aimed at securing their continued employment with the Council and managing their movement to other areas of work in line with outcomes of the transformation programme, service redesign etc.

332. The supporting measures that have been established to assist affected

employees include access to a protected pool of permanent vacancies created by filling posts via temporary cover arrangements, redeployment activities, use of flexible working policies e.g. secondment policy, and development of a skills enhancement toolkit to support staff in either refreshing their existing skills or develop new skills in order to enhance their opportunities to find another role in the Council. In addition, support is available to affected staff through the Cardiff Council Academy.

333. The Trade Unions have been consulted throughout the budget planning

process and their initial comments are detailed in paragraph 334. In addition, trade unions have been, and will continue to be involved in all the existing transformational change and service redesign programmes at both planning and implementation stages, and they will also be involved in the Wave 2 Programmes. A major focus of all these change programmes will be consideration of the people implications associated with those programmes.

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334. Consultation meetings with the Trade Unions in respect of the Executive

Budget proposal were held on 30 January 2012 and 6 February 2012 A summary of their observations is:

Saving

Reference Description TU comments

114 Reduced hours of Health and Safety (H&S) Advisor post

Concern that although no loss of current resources, demand for H&S support across the Council is great.

68 Highways redesign TUs do not support this proposal

69 Efficiency improvements to MRF operations

TUs do not support this proposal *

- Grants to third sector

Third sector grants should reduce by similar percentage to that suffered by Council services.

*Following further consultation, the acceptance of this saving proposal was amended at the Executive Business Meeting on 16 February 2012.

Legal Implications 335. Under the Local Government Finance Act 1992 (as amended) the Council

is required to make certain calculations for its budget requirement for each financial year. The Executive has specific responsibility for:-

(a) The preparation for submission to the Council for their

consideration of estimates of the amounts to be aggregated in making the calculation or of other amounts to be used for the purposes of the calculation;

(b) The reconsideration of those estimates and amounts in

accordance with the Council’s requirements; (c) The submission for the Council’s consideration of revised

estimates and amounts. 336. In doing so, the Executive must have regard to the following statutory

framework and guidance:-

• Local Government Finance Act 1992, which requires the Council to calculate (inter alia) the aggregate of:

(a) the expenditure which the Authority estimates it will incur in

the year in performing its functions and will charge to a revenue account for the year;

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(b) such allowances the Authority estimates will be appropriate for contingencies in relation to expenditure to be charged to a revenue account for the year;

(c) the financial reserves which the Authority estimates it will

be appropriate to raise in the year for meeting its estimated future expenditure; and

(d) such financial reserves are sufficient to meet so much of

the amount estimated by the Authority to be a revenue account deficit for earlier financial yea as has not already been provided for.

• As the billing authority it is the Council’s duty to calculate the

Council Tax for each financial year and the Authority is required under Section 30(6) of the 1992 Act to make that assessment by 11 March in the financial year preceding that for which the tax is set. A failure to comply with this time limit may leave the Authority open to challenge by way of judicial review.

• Local Government Act 2003, which establishes a system to

regulate the capital expenditure and borrowing of the Council. The heart of the prudential borrowing system is the duty imposed upon authorities to determine and keep under review how much money they can afford to borrow. The Local Authorities (Capital Financing and Accounting) (Wales) Regulations 2003 (as amended) specify the prudential code for capital finance to which local authorities in Wales must have regard in setting and reviewing their affordable borrowing limits (sections 3 and 5 of the 2003 Act). Section 25 of the 2003 Act requires the Council’s Chief Corporate Services & Section 151 Officer to make a report to the Authority when it is considering its budget and Council Tax. The Report must deal with the robustness of the estimates and the adequacy of the reserves allowed for in the budget proposals so that Members will have authoritative advice available to them when they make their decision. Members are required to have regard to the report in making their decisions.

• The Local Government & Housing Act 1989 Part VI. The Authority

has a general duty to review the rents of its houses from time to time and in fixing rents the Council must have regard, in particular, to the principle that the rents of dwellings of any class or description should bear broadly the same proportion to private sector market rents as the rents of dwellings of any other class or description. The review of the rents is an Executive function, and is undertaken with regard to the provisions of Part VI of the Local Government and Housing Act 1989 which governs housing finance and housing subsidy. Rents for council houses are a credit to the Housing Revenue Account (HRA) and outgoings a debit. The authority is under a duty to prevent a debit balance on the HRA which is ring-fenced. There are restrictions in the way in which the account can be operated and the proposals in this

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report must comply with these accounting requirements to ensure that the rent should be set so as to ensure that the Council is able to comply with its duty to prevent a debit balance arising on the HRA.

• The Council’s general fiduciary duty. Elected Members are

trustees of the public interest and of the statutory purposes of the public powers conferred on them. This general duty requires the Authority to act prudently and in good faith in the interests of those to whom the duty is owed.

• Local Authorities Executive Arrangements (Functions and

Responsibilities) (Wales) Regulations 2007. The adoption of a final strategy for the control of the Authority’s borrowing or capital expenditure is a matter for the Council and is not an Executive function. The Executive may make recommendations but the decision is to be made by full Council.

• Equalities Impact Assessment. The Council has an obligation

under the Equality Act 2010 to undertake impact assessment on all policies and decisions. To comply with this duty, chief officers have undertaken equality risk assessments for their savings and financial pressure submissions, which have informed this budget setting process.

337. All decisions taken by or on behalf of the Council must:-

(a) be within the legal powers of the Council (b) comply with any procedural requirement imposed by law (c) be within the powers of the body or person exercising powers on

behalf of the Council (d) be undertaken in accordance with the procedural requirements

imposed by the Council e.g. Council procedure rules (e) be fully and properly informed (f) be properly motivated (g) be taken having regard to the Council’s fiduciary duty to its tax

payers; and (h) be reasonable and proper in all of the circumstances.

338. In regard to appropriations from the General Fund to the Housing

Revenue Account which involve changes of purpose, the decision maker will need to consider why the land is not required for its present purpose and whether to appropriate it to another purpose. In the case of open space land any such change of purpose will need to be advertised and any objections considered

Financial Implications 339. The past three years have seen unprecedented economic times with

extreme financial pressure being experienced by both the public and private sectors. Even so the latest indications from the UK Treasury are that the period of financial and economic restraint is likely to remain for the

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remainder of this decade. Thus the Executive in compiling this budget proposal has been conscious of the impact on the citizens, customers and communities of Cardiff and has sought to protect vulnerable individuals, support education in schools and encourage economic activity.

340. The budget proposals set out in this report will result in significant

operational and financial challenges as evidenced by the risk assessment exercise. The progress of these challenges will be monitored through service plans, performance reports and the Corporate Risk Register when reported to the Executive and Corporate Management Board.

341. Particular challenges for 2012/13 and in the medium term were identified

through this exercise and include:-

• Continuing demographic demand for social care services if trendlines vary significantly from the expected position.

• Necessity to deliver cashable net savings from transformation particularly where significant residual risks have been identified.

• Total quantum of savings to be achieved from waste management through reduced residual waste being disposed of to landfill.

342. In formulating a budget, the Executive must come to a balanced

judgement between the need for service provision and the financial impact of those service needs on the Council Tax payers. In order to achieve this balance the Council has made significant levels of savings for many years as set out below:

Budget Savings

Year £m 2012/13 14.4 2011/12 22.0 2010/11 14.0 2009/10 8.7 2008/09 9.1

343. Within the above figures, savings from transformation amount to circa £22

million with the amount of £10.2 million accepted in 2012/13 accounting for 71% of the total savings for that year. However the achievement of such a far reaching transformation programme will continue to require investment in governance and programme management arrangements in the medium term. For 2012/13 the overall resources available to support the Programme has been set at £4.810 million.

344. In summary the budget proposal for 2012/13 includes:

• New financial pressures of £11.954 million. • Savings of £14.379 million. • Budget increases of 1.93% and 4.3% for schools and social care

respectively in response to the WG’s requirement to increase these services by at least 1.58%.

• Net reduction of 165.6 fte posts.

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• A Council Tax increase of 1.44% resulting in a Band D charge of £936.56.

345. The budget assumes the use of earmarked reserves of £1.314 million but

with no drawdown from General Reserves. This indicates a slightly lesser level of support from earmarked reserves than in 2011/12 although any use of reserves for recurrent purposes should be undertaken with care as funding will need to be found from base funding in subsequent years.

346. The number of employees accessing voluntary severance has reduced

significantly in comparison with 2011/12 and 2010/11 but it is clear that the Council will continue to use this mechanism as service redesign progresses. However, this mechanism must continue to be tested through business cases to ensure that there is a clear financial benefit for the Council.

347. Following the signing of the Collective Agreement on 30 January 2012, the

budget allows for the cost of the implementation of the new pay and grading scheme. The actual increase in the Council’s pay bill will not be settled until the evaluation for all posts have been finalised and the results of appeals are known. Consequently the financial impact of this will be kept under review and monitored closely. Also as part of the Collective Agreement, the Council has committed to concluding the settlement negotiations in respect of the valid outstanding equal pay claims. This report makes mention of the Council’s progress towards creating a cash backed reserve towards funding these claims.

348. Various medium term policy initiatives have been introduced into the

budget commencing in 2012/13. These include providing funding over the medium term to enable a stepped change in the condition of highways and footways; a refresh of the ICT infrastructure across the Council and resources for the Council’s contribution for an International Conference and Convention Centre. In addition resources over the medium term to enable the Council to take advantage of new modern technologies that will underpin the transformation of its operations have been included.

349. The Council has a statutory duty to ensure that the HRA achieves a

balanced budget and this has been achieved in this budget proposal. The weekly increase in housing rents of £3.85 is in line with the WG’s guideline figure and which will be used in their housing subsidy calculation.

350. Resources to finance the General Fund capital programme in 2012/13

include capital receipts to be achieved of £9.5 million and use of additional borrowing of £140 million to meet new commitments from 2012/13. Particular attention needs to be given to the medium and long term impact of additional borrowing on the revenue budget and it should be noted that decisions taken as part of this budget will increase borrowing costs significantly as a proportion of the total base for savings in future years. Such costs will become unavoidable commitments in the revenue budget for an extensive period of time and could have a significant impact on non protected services in the form of the need to find further savings.

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351. The value of schemes undertaken to be repaid from self-funding mechanisms such as income generation or reduced expenditure over short and long periods of time stands at £100 million between 2012/13 and 2016/17. This is additional to the commitments already entered into and is a significant use of these arrangements which will need to be monitored closely.

352. Resources required to finance the Public Housing Capital Programme

over the next five years also show the intention to undertake additional borrowing of £20.6 million to construct new Council housing following the achievement of the WHQS in 2012. The affordability of such borrowing costs will be paid for from existing HRA resources and new rental income streams. The required business case will need to be considered having regard to any potential changes in the Housing Finance system. As part of this initiative a number of surplus sites will be appropriated from the General Fund to the HRA and it has been determined that this action is financially neutral to the HRA while the current Housing Subsidy system is in place.

353. The inclusion of schemes in the Capital Programme has been profiled in

accordance with technical advice relating to regulatory processes, timetables and workflow. Historically, the Council has experienced significant slippage of capital schemes which has prompted adverse comment from the External Auditor. Following this comment and similar remarks from the Council’s Audit Panel, capital scheme sponsors have been reminded of the importance of robust profiling in order that capital plans can be achieved as expected. Nevertheless, with such an extensive programme there remains a residual risk that expenditure may slip between years and so any consequential impact on the financing of the programme will be addressed as part of the monitoring work during 2012/13.

354. The Consolidated Financial Model for the School Organisation Plan brings

together the projected capital expenditure and funding schedule over the life of the model and amounts to £176.9 million. The plan is designed to be self-funding but this together with the significant financial exposure for the Council as a result of the extent of the work, demands that close monitoring of the key risks continues to be undertaken and issues escalated when required. In addition the WG has approved an indicative Capital Investment Programme of £137.3 million for Cardiff as part of the 21st Century Schools Programme. When the individual business cases are approved by the WG the scheme costs will be added to the Consolidated Model.

355. The indicative increases in AEF included in the final Financial Settlement

from the WG have been used to underpin the resource base for the MTFP. However, it is evident that anticipated resources are unlikely to cover the emerging financial pressures that the Plan anticipates. The Plan also shows that the balance of finance needed to be found from savings, use of reserves or potential increases in the rate of Council Tax may be:

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Year Potential Gap £m

2013/14 18.4 2014/15 16.5 2015/16 13.8

356. In conclusion, in the current period of relentless rapid change, budgetary

control continues to be of great importance and it is vital that responsible officers take ownership of their budgets and that expenditure remains within financial resources.

357. A glossary of technical terms found within this report is set out in Appendix

16. Executive Consideration 358. The Executive considered the Budget proposals on 16 February 2012 and

agreed that:

(1) the changes to fees and charges as set out in Appendix 9 to this report be approved.

(2) authority be delegated to the appropriate Chief Officer in

consultation with the Chief Corporate Services & Section 151 Officer and the Executive Member for Finance and Service Delivery to amend or introduce new fees and charges during the year.

(3) the rents of all Housing Revenue Account dwellings (including

garages) be increased in line with the WG guidelines increase. (4) all service charges set out in Appendix 9 (b) be approved (5) the rents for homeless accommodation increase within the

Department of Work and Pension thresholds. (6) the management fee for leaseholders be increased by 1.88%. (7) all Housing Revenue Account rent increases take effect from 2 April

2012. (8) in principle land be appropriated from the General Fund to the

Housing Revenue Account and delegate the decision, subject to consultation, in respect of individual parcels of land for appropriation to the Chief Corporate Services & Section 151 Officer in consultation with the Executive Member for Finance & Service Delivery and the Communities Corporate Chief Officer.

EXECUTIVE PROPOSAL The Executive, having taken account of the comments of the Chief Corporate Services & Section 151 Officer in respect of the robustness of the budget and the adequacy of reserves as required under Section 25 of the Local

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Government Act 2003, and having considered the responses received to the Budget Consultation recommend Council to: 1.0 Approve the Revenue, Capital and Housing Revenue Account budgets

including all proposals and the Council Tax increase of 1.44% as set out in this report and that the Council resolve in the following terms.

2.0 Note that at its meeting on 15 December 2011 the Council calculated

the following amounts for the year 2012/13 in accordance with the regulations made under Section 33(5) of the Local Government Finance Act 1992:-

(a) 137,951 being the amount calculated in accordance with

Regulation 3 of the Local Authorities (Calculation of Council Tax Base) (Wales) Regulations 1995, as amended, as its Council Tax base for the year.

(b) being the amounts calculated in accordance with Regulation 6 of

the Regulations as the amounts of its Council Tax base for the year for dwellings in those parts of its area to which special items relate.

2.1 Agree that the following amounts be now calculated by the County

Council of the City and County of Cardiff for the year 2012/13 in accordance with Sections 32 to 36 of the Local Government Finance Act 1992:-

(a) Aggregate of the amounts which the Council estimates for the

items set out in Section 32(2)(a) to (d) (including Community Council precepts totalling £238,800) £995,483,000

(b) Aggregate of the amounts which the Council estimates for items set

out in Section 32(3)(a) and (c). £465,303,823

(c) Amount by which the aggregate at 2.1(a) above exceeds the

aggregate at 2.1(b) above calculated in accordance with Section 32(4) as the budget requirement for the year. £530,179,177

(d) Aggregate of the sums which the Council estimates will be payable

for the year into its Council Fund in respect of Revenue Support Grant, redistributed Non-Domestic Rates or Additional Grant. £400,980,651

Lisvane 2,276Pentyrch 3,127Radyr 3,525St. Fagans 1,197Old St. Mellons 1,238Tongwynlais 805

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(e) The amount at 2.1(c) above less the amount at 2.1(d) (net of the amount for discretionary relief of £240,000), all divided by the amount at 2.0 (a) above, calculated in accordance with Section 33(1) and 33(3b) as the basic amount of Council Tax for the year.

£938.29 (f) Aggregate amount of all special items referred to in Section 34(1).

£238,800 (g) Amount at 2.1(e) above less the result given by dividing the amount

at 2.1(f) above by the amount at 2.0(a) above, in accordance with Section 34(2) of the Act, as the basic amount of Council Tax for the year for dwellings in those parts of the area to which no special items relate. £936.56

(h) The amounts given by adding to the amount at 2.1(g) above the

amounts of special items relating to dwellings in those part of the council's area mentioned below, divided in each case by the amount at 2(b) above, calculated in accordance with Section 34(3) as the basic amounts of Council Tax for the year for dwellings in those parts of the area to which special items relate.

£

Lisvane 948.86Pentyrch 959.91Radyr 958.97St. Fagans 950.34Old St. Mellons 957.80Tongwynlais 956.44

i) The amounts given by multiplying the amounts at 2.1(g) and 2.1(h)

above by the number which in the proportion set out in the Council Tax (Valuation Bands) (Wales) Order 2003 is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D calculated in accordance with Section 36(1) of the Act as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

VALUATION BANDS

A B C D E F G H I £ £ £ £ £ £ £ £ £ Area Lisvane 632.57 738.01 843.44 948.86 1,159.73 1,370.58 1,581.44 1,897.72 2,214.02 Pentyrch 639.93 746.60 853.25 959.91 1,173.22 1,386.53 1,599.85 1,919.81 2,239.78 Radyr 639.31 745.87 852.42 958.97 1,172.08 1,385.18 1,598.29 1,917.94 2,237.60 St. Fagans 633.56 739.16 844.75 950.34 1,161.54 1,372.72 1,583.91 1,900.69 2,217.47 Old St. Mellons 638.53 744.96 851.38 957.80 1,170.65 1,383.50 1,596.35 1,915.61 2,234.88 Tongwynlais 637.62 743.90 850.17 956.44 1,168.98 1,381.52 1,594.07 1,912.87 2,231.69 All other parts of the Council’s Area

624.37 728.44 832.50 936.56 1,144.69 1,352.81 1,560.94 1,873.12 2,185.31

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2.2 Note that for the year 2012/13, the South Wales Police Authority has

stated the following amounts in precepts issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992 for each of the categories of dwelling shown below:-

VALUATION BANDS

A B C D E F G H I £ £ £ £ £ £ £ £ £

112.94 131.77 150.59 169.42 207.07 244.71 282.36 338.83 395.31 2.3 Having calculated the aggregate in each case of the amounts at 2.1(i)

and 2.2 above, the County Council of the City and County of Cardiff in accordance with Section 30(2) of the Local Government Finance Act 1992 hereby sets the following amounts as the amounts of Council Tax for the year 2012/13 for each of the categories of dwellings shown below:-

VALUATION BANDS A B C D E F G H I £ £ £ £ £ £ £ £ £

Area Lisvane 745.51 869.78 994.03 1,118.28 1,366.80 1,615.29 1,863.80 2,236.55 2,609.33Pentyrch 752.87 878.37 1,003.84 1,129.33 1,380.29 1,631.24 1,882.21 2,258.64 2,635.09Radyr 752.25 877.64 1,003.01 1,128.39 1,379.15 1,629.89 1,880.65 2,256.77 2,632.91St. Fagans 746.50 870.93 995.34 1,119.76 1,368.61 1,617.43 1,866.27 2,239.52 2,612.78Old St. Mellons

751.47 876.73 1,001.97 1,127.22 1,377.72 1,628.21 1,878.71 2,254.44 2,630.19

Tongwynlais 750.56 875.67 1,000.76 1,125.86 1,376.05 1,626.23 1,876.43 2,251.70 2,627.00All other parts of the Council’s Area

737.31 860.21 983.09 1,105.98 1,351.76 1,597.52 1,843.30 2,211.95 2,580.62

2.4 That the Chief Corporate Services and Section 151 Officer be authorised

to make payments under Section 38 of the Local Government (Wales) Act 1994 from the Council Fund by equal instalments on the last working day of each month from April 2012 to March 2013 in respect of the precept levied by South Wales Police Authority in the sum of £23,371,286.

2.5 Agree that the Common Seal be affixed to the said Council Tax. 2.6 Agree the Common Seal be affixed to precepts for Port Health Expenses

for the period 1 April 2012 to 31 March 2013 namely

£ The County Council of the City and County of Cardiff 148,445 The Vale of Glamorgan County Borough Council 16,555

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2.7 Agree that notices of the making of the said Council Taxes signed by the

Chief Executive be given by advertisement in the local press under Section 38(2) of the Local Government Finance Act 1992.

3.0 Approve the Prudential Indicators for 2012/13, 2013/14 and 2014/15

delegating to the Chief Corporate Services & Section 151 Officer the authority to effect movement between the limits for borrowing and long term liabilities within the authorised limit for any year.

4.0 Approve the Treasury Management Strategy in accordance with the Local Government Act 2003 and the Local Authority (Capital Finance and Accountancy) (Wales) Regulations 2003 and subsequent amendments.

5.0 Approve the Minimum Revenue Provision for 2012/13. 6.0 Authorise the Chief Corporate Services & Section 151 Officer to raise

such funds as may be required to finance capital expenditure by temporary or long term borrowing within the limits outlined above, and to bring forward or delay schemes within the approved Capital Programme.

7.0 Approves the Affordability Envelope defined in Appendix 17, committing

funding for an appropriate solution up to the maximum limit quantified. The actual budget requirement will be confirmed in the Final Business Case, and reported to Full Council at the conclusion of the Competitive Dialogue process.

THE EXECUTIVE 16 February 2012 The following Appendices are attached:- Appendix 1 Council Budget Consultation Cover Sheet 1(a) Children & Young People Scrutiny Letter 1(b) Economy & Culture Scrutiny Letter 1(c) Community & Adults Services Scrutiny Letter 1(d) Environmental Scrutiny Letter 1(e) Policy Review and Performance Scrutiny Letter 1(f) Ask Cardiff Survey Appendix 2 List of known Specific Grants from Welsh Government (All

Wales) Appendix 3 Revenue Resources Required Appendix 4 Financial Pressures Appendix 5 Service Area Savings Appendix 6 Transformation Savings across Service Areas Appendix 7 Earmarked Reserves (a) General Fund (b) Housing Revenue Account (c) Schools Appendix 8 Employee Changes Appendix 9 Fees & Charges (a) General Fund

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(b) Housing Revenue Account (c) Parks & Sports Appendix 10 Service Area Budgets Appendix 11 Housing Revenue Account Appendix 12 School Organisation Plan Reserve Appendix 13 Civil Parking Enforcement Reserve Appendix 14 Capital Programme Resources Appendix 15 Capital Programme Expenditure Appendix 16(a) Glossary of Terms - General Appendix 16(b) Glossary of Terms – Prudential Indicators Appendix 16(c) Glossary of Terms - Treasury Appendix 17 Organic Waste Affordability Envelope – Exempt Financial

Implications The following Background Papers have been taken into account:-

• Budget Strategy Report (July 2011)

• WG Final Financial Settlement (December 2011)

• Results of Ask Cardiff Budget Questions 2007-2010

• Analysis of Section 106 balances held

• Details of Fees & Charges

• Capital Receipts forecast

• Equality Impact Screening of Cardiff Council’s 2012/13 Budget

• Municipal Organic Waste Treatment – Procurement October EBM Report

APPENDIX 1

1. COUNCIL BUDGET CONSULTATION

1(a) – Children & Young People Scrutiny Letter 1(b) – Economy & Culture Scrutiny Letter 1(c) – Community & Adults Services Scrutiny Letter 1(d) – Environmental Scrutiny Letter 1(e) - Policy Review and Performance Scrutiny Letter 1(f) – Ask Cardiff Survey

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APPENDIX 1(a) Date 10th February 2012 My Ref SS/CYP/MJH Your Ref:

Councillor Mark Stephens Executive Member Room 278 County Hall Atlantic Wharf CARDIFF CF10 4UW Dear Mark, Re: Scrutiny of the draft Corporate Plan 2012 - 2014 and draft Budgetary Proposals 2012-13 As the Chairperson of the Children & Young People Scrutiny Committee I am writing on behalf of the Committee to thank you for attending the meeting which took place on 9th February 2019. At the meeting the Committee considered the draft Corporate Plan 2012 – 2014 and draft 2012-13 Budget Proposals relevant to the Committee’s terms of reference. Members would like to pass on their thanks to all those who attended for their presentations, comments and answers to questions. Having considered the information provided at the meeting and the agenda papers, Members would like to make the following comments to the Executive: 1. Draft Corporate Plan 2012 – 201 The Committee welcomed the opportunity to consider the draft Corporate Plan and noted the Officers’ comments that this Corporate Plan was just a refresh of the previous plan. The Committee did however express some concern about the targets and performance measures identified for Education. Whilst the Committee supports the aspiration to raise school attendance levels, Members felt that targets should be realistic and achievable, particularly in areas with ethnic minority communities with a high level of pupils undertaking heritage visits. 2. Children’s Services Budget Proposals The Committee noted that the presentation showed the clear links between the draft Corporate Plan and the draft Budget Proposals for this service area, Members welcomed that the Children’s Services budget had been increased by £2.6M to again bring the budget in line with actual expenditure and Members hoped that this would ensure no further overspends in 2012/2013. Members were also pleased to note that the Executive had only accepted 1.1% savings from Children’s Services thereby protecting a key frontline service. Members did express some concern that this service area was requested to identify 10% saving which necessitated considerable work and stress in identifying

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APPENDIX 1(a) savings when the Executive only accepted 1.1% savings and has invariably increased overall funding for the service area.

Following detailed questioning Committee were however, concerned at the achievability of some savings, namely:

• Line 13 - Looked After Children agency p[lacements £159,000 • Line 14 - Increase in-house Fostering by 8 full year placements £141,000 • Line 28 – Support for children in families without recourse to public funds £50,000

Members wished to inform the Executive and officers that the Committee would be monitoring progress on achieving these savings throughout the financial year. In addition Members requested further information in respect of the savings line 20 - Llamau Commissioned Services for provision of Housing for Care Leavers £63,000 as they were unclear as to how this saving could be achieved. The Committee welcomed that the financial pressures bid of £377,000 for Intake and Assessment Capacity had been accepted, particularly as the Committee had been concerned at the poor assessment performance for a number of years and its recently completed Task and Finish Task Group report on Case Management of Intake and Assessment had identified a considerable resource requirement and improved management and staffing structure. Members also requested clarification of the funding bid line 10 – Family Support Services £70,000 and in particular what services were actually being commissioned and how this would support children in need. 3. Communities – Play through the Medium of Welsh

The Committee welcomed the Executive’s acceptance of the need for extra support, Line 37 - £35,000, towards Play through the Medium of Welsh as this was highlighted in the Committee’s Task & Finish report on the issue. The Committee also requested a progress report on the implementation of the recommendations contained in the Task & Finish report at its next meeting in March. 4. Education Budget Proposals The Committee noted that the presentation showed the clear links between the draft Corporate Plan and the draft Budget proposals for this service area. The Committee welcomed that the Education Budget had been increased by 1.93% which was above the Welsh Government requested increase of 1.5%, and that of the 10% savings proposed only 3.3% had been accepted.

The Committee were however, extremely concerned at the acceptance of Youth Service – management and Administration – line 134 - £33,000. Members considered that the change to a combined neighbourhood management structure could be a retrograde step in the way the service is managed. The Committee will closely monitor the impact of these changes on service provision over the coming year. The Committee would also like to reiterate their previously expressed view that youth centre provision should be resourced to provide a service across the City for 52 weeks of the year.

Members expressed concern that although the Council was now working towards a South Wales Central Education Consortium, the Executive were not able to accept the proposed saving of £384,000 (Line 130), as these savings were designed to provide more resources

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APPENDIX 1(a) for the schools delegated budget. Members agreed to continue to scrutinise the consortium arrangements over the next year. Members were also concerned that line 133 – Management and Support £459,000 had only been partially accepted at £300,000 as this would impact on the capacity of the service area to deliver the outcomes of the ESTYN post inspection action plan. The Committee wished to inform the Executive and Officers that they will be closely monitoring progress on the implementation of the action plan throughout the next year. The Committee welcomed the accepted bid for £500,000 (line 45) to support the Post ESTYN Action Plan, however following discussions on this item Members remained unclear as to how this additional funding would impact on behaviour, attendance, exclusions and NEETS and requested a further report detailing the projects being funded by this additional money and the expected outcomes. 5. School Transport Budget Proposals The Committee recognised that there were real pressures to provide appropriate transport arrangements for pupils with changes in schools. the Committee welcomed the Executive’s acceptance of all the bids, including the partial acceptance of the Training for Home to School Passenger Transport Contracted Drivers and Escorts as Members were reassured by Officers that the funds provided were sufficient to implement the training.

I trust that these comments will help inform the discussion at the Executive Business Meeting on 16th February 2021 and the subsequent proposals taken to Council.

Yours sincerely,

COUNTY COUNCILLOR BILL KELLOWAY Chair of the Children & Young People Scrutiny Committee CC to: Councillor Rodney Berman, Council Leader; Jon House, Chief Executive Councillor Kirsty Davies, Executive Member for Health, Social Care & Wellbeing; Councillor Freda Salway, Executive Member for Education & Lifelong Learning; Nigel Howells, Executive Member, Culture Leisure and Parks Christine Salter, City and County Treasurer Nick Jarman Interim Corporate Director; Maria Michael, Chief Children’s Services Officer; Chris Jones, Chief Schools and Lifelong Learning Officer; Neil Hardee, Head of Performance, Resources and Services Philip Lenz, Chief People & Organisational Development Officer Adrian Dennington’ Operational Manager for Central Transport Services Graham Craven, Head of Service Communities Service Jo Blaney, Executive Office Manager

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APPENDIX 1(b)

My Ref: T:\COMMITTEES\Scrutiny\Economy & Culture\ COMMITTEE MEETINGS AND REPORTS\2011\2012.02.13\Letters 14th February 2012 Cllr Mark Stephens Executive Member (Finance and Service Delivery) Room 277 County Hall, Cardiff Annwyl Mark, RE: Scrutiny of the Draft 2012/13 Budget Proposals I am writing on behalf of the Economy and Culture Scrutiny Committee to thank you for attending the meeting on 14th February. Members would like to thank all those who attended for their presentations, comments and answers to questions. We would like to thank you for the timely production of the Corporate Plan which meant there was sufficient time to allow for Members to consider it alongside the budget proposals. As in previous years we discussed the possibilities of having a statement explaining the context and ethos for setting the Council Tax and that this would improve the draft Corporate Plan’s linkage to the budget process. As you will be aware the Committee have scrutinised Cardiff & Co during the municipal year and were aware of the financial position arising directly from the Welsh Government’s review of affordability of the Harbour Authority. The Committee noted that there was a £200, 000 approved financial pressure arising from this review which the Council would be financed via the revenue budget. Given this extra financial burden the Committee would like to receive the audited accounts for Cardiff & Co so that it can determine for itself the financial position. In addition, the Committee would like to receive the Price Waterhouse Coopers report on Cardiff & Co. The Committee noted with interest the growth proposals relating to ‘Source Cardiff’ to improve the Council’s approach to procurement and the development of its work with SMEs. The Committee were of the view that the proposed housing developments will provide opportunities to improve procurement activity relating to SMEs and job creation. In discussing the issues with Cardiff Airport connectivity and the competitiveness of Cardiff the Committee have recommended that a scrutiny exercise be undertaken in the next municipal year. Whilst unemployment within Cardiff remains a concern the Committee noted that ‘the number of centre users assisted into employment by Local Training and Enterprise Centres’ indicator for 2010/11 had achieved 3638 and were

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APPENDIX 1(b)

pleased with the level of achievement. The Committee noted that targets for up to 2013-2014 remained static at 3000 and the comments relating to the targets mirroring the tough economic conditions. The Committee would like to point out that 2010-11 was also a tough year economically yet the service area managed a high level of achievement, as such the Committee were of the view that a modest increase in the target would be appropriate. In examining the indicator in more depth the Committee would like to be furnished with information on the drop out rate and the extent of assistance into longer term job opportunities. In relation to the Libraries Members were pleased that arrangements were in place to ensure that the book fund is supported via the £80, 000 financial pressure relating to income targets on DVDs and CDs. The Committee were also pleased that art house and foreign language films would be protected. In discussing the impact of the partially accepted financial pressure relating to Neighbourhood Learning the Committee noted that there a reserve was in place should the need arise. The Committee also noted that the service area would be conducting a review of fees and charges and were concerned that any review should examine the impact on service users. In discussing community facility assets the Committee would like to encourage the service area to maximise the opportunities for community use of buildings like the Jasmine Centre. I hope that these comments will help inform the discussion at the Executive Business Meeting on 16th

February 2012 and the subsequent proposals taken to Council. I would be most grateful if you could furnish the Scrutiny Officer with the information requested. Yr Eiddoch yn Gywir,

Cynghorydd / Councillor Mohammed-Sarul Islam Cadeirydd Pwyllgor Craffu Economi a Diwylliant Chairperson Economy & Culture Scrutiny Committee cc Graham Craven, Head of Community Facilities cc Christine Salter, City and County Treasurer cc Cllr Rodney Berman, Council Leader cc Cllr Nigel Howells, Executive Member, Sport, Leisure & Culture cc Cllr Neil McEvoy, Executive Member, Economic Development cc Christine Salter, City and County Treasurer cc Martin Hamilton, Chief Officer City Management cc Joanne Blanney, Executive Office Manager cc Kathryn Richards, Head of Service Culture Tourism and Events cc Neil Hanratty, Chief Officer City Development

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APPENDIX 1(c)

My Ref: Scrutiny/Correspondence/ Cllr Cook 14 February 2012 Councillor Mark Stephens Room 278 County Hall Atlantic Wharf CARDIFF CF10 4UW Dear Mark Community and Adult Service Scrutiny Committee, 13th February 2012 On behalf of the whole committee, I would like to thank you, and all those who attended the Community and Adult Services Scrutiny Committee on 13th February 2012 to discuss the draft Corporate Plan 2012-14 and the Executive’s draft Budget Proposals. Our comments and recommendations are set out below. Corporate Plan 2012-14 Members thank Mike Davies for his presentation. Members note the following points with regard to the draft Corporate Plan 2012-14:

• All the main activities that are currently known about are included in the draft Corporate Plan

• The Ask Cardiff survey cycle is moving to report in June of each year as experience has shown that there is a better response rate achieved in surveys carried out at this time of year

• Officers will work to amend the Corporate Plan to reflect any shifts in priorities caused by changes in the council’s administration following the election in May 2012; an amended Corporate Plan would then be taken to Full Council for agreement.

Members had one recommendation to make with regard to the structure of the Corporate Plan, namely to include more performance information for the ‘Success Indicators’ to enable readers to clearly see the direction of travel over recent years. This would also enable commentary to be included where relevant to ensure readers were given a balanced picture of the challenges facing Cardiff e.g. commentary on the reducing crime rate. With regard to percentage of staff having a Performance Development Review (PDR), Members were interested to note that Communities had achieved 90% and Adult Services had achieved 75% but expected to achieve 100% within the next couple of weeks. Members note that the Chief Executive has prioritised PDRs and that this cascades through the management tiers. Members would like to receive from both Communities and Adult Services a

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APPENDIX 1(c)

written response detailing what lessons they think they have learnt from implementing the process of PDRs - what they feel has gone well or not worked - and how they will learn from this in the future. Budgetary Proposals 2012 - Overall Comments You will note that this letter does not contain as many recommendations or concerns as in previous years. This is because, on the surface and based on the information presented to committee, Members feel that this budget seems reasonable and would view with alarm any significant changes to the budget. Whilst some Members felt that other savings could be made, some Members thought there was room for questioning some of the saving proposals. With regard to Transformation Savings, Members remain concerned about the impact that these savings are having on staff and therefore on service delivery. Many of these savings relate to a reduction in the number of staff, either via management structure reviews or service redesign reviews. These affect both back office and front office staff. Members do not accept that back office staff can be cut without sometimes affecting front office staff; this has been seen clearly in the recent Intake & Assessment Inquiry carried out by the Children & Young People Scrutiny Committee. In addition, as part of dealing with ward queries, several Members of this Committee have noticed that staff are more stressed than previously and that this is affecting both how they interact with customers/ service users and with how they deal with queries. Members note the response from Executive Members that the majority of the stresses identified via staff surveys relate to pressures external to work, namely debt and relationship issues. Members wish to receive the report detailing the findings of these surveys and ask that Human Resources People Services send this information to Scrutiny Services. Communities The Committee wishes to thank Sarah McGill for her presentation and are content that this showed the linkages between the draft Corporate Plan 2012-14 and the budgetary proposals. Members wish to accept Sarah McGill’s offer to provide further information on the improvements to Gypsy & Traveller sites and ask that this be sent to Scrutiny Services. Members also wish to receive additional information on the funding available for Affordable Warmth schemes in 2012-13 and ask for the following information as part of the response to this letter:

• For each individual type of scheme - the amount of funding in 2012-13, the type of funding (HRA or grant etc.) and the aim of the scheme.

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APPENDIX 1(c)

Neighbourhood Regeneration The Committee wishes to thank Don Davidson for his presentation and are content that this showed the linkages between the draft Corporate Plan 2012-14 and the budgetary proposals. Members are content with the Capital Programme items for this service area. Members note that the presentation referring to the Savings Proposal Row 37 stated that the ‘saving can be accommodated by reprioritisation of work and focus on core functions of project coordination, community engagement and scheme delivery.’ However, when Members explored this at the meeting it became clear that there would be an impact in terms of a reduction in the level of community mapping and a reduction in the resources focused on identifying external funding. Members are concerned about this as these will ultimately have an impact on communities. Adult Services The Committee wishes to thank Mike Murphy for his presentation and are content that this showed the linkages between the draft Corporate Plan 2012-14 and the budgetary proposals. Members note that this year there is no increase in the baseline budget as the indications at Month 8 are that Adult Services has managed to operate within the baseline budget 2011-12. Members also note that Councillor Kirsty Davies stated that she was ‘extremely happy’ with the settlement for Adult Services this year. With regard to Adult Services work to address health inequalities, as detailed in the draft Corporate Plan 2012-14 , Members thank Councillor Kirsty Davies for her offer to provide copies of the DVD ‘Healthy Cities’, which they wish to accept. Members also wish to accept Mike Murphy’s offer to provide information on health inequalities and ask that this be sent to Scrutiny Services. Members note that the term ‘full year effect of saving’ refers to the pro rata saving for 2012-13 of staffing changes made towards the latter end of 2011-12. With regard to the Financial Pressures, row 5, Members note that the service area believes it can manage on the partial acceptance as the original bid for £3.95M was made in July 2011 when the demand curve for 2011-12 was not clear. Members note that the agreed amount of £2.4M comprises £1.1M for demographic growth and £1.3M for increases in fees. Finally, Members were astounded to discover that a mechanism exists for Members to hear Appeals as part of the Fair Access to Care Eligibility Criteria process. Members believe that the political groups should have been made aware of this and that appropriate training should have been offered to

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APPENDIX 1(c)

Members to ensure they were ready to undertake an Appeal when they were called on to do so. As this has not happened, Members are concerned there may be a cost implication for the Council when an Appeal is needed but has to be delayed to ensure Members are appropriately trained. Members wish to accept Mike Murphy’s offer to report back on the process and provide this Committee with details. I trust that these comments help inform the discussion at the Executive Business Meeting on 16th February and the subsequent proposals taken to Council. This letter requires a formal response as it makes recommendations and seeks additional information. Yours sincerely,

COUNTY COUNCILLOR RALPH COOK Chairperson, Community and Adult Services Scrutiny Committee cc Councillor Rodney Berman Councillor Kirsty Davies Councillor Judith Woodman Jon House Nick Jarman Mike Davies Vivienne Pearson Christine Salter Allan Evans Sarah McGill Bethan Jones Neil Hanratty Don Davidson Mike Murphy Stuart Young Philip Lenz

Joanne Blaney

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APPENDIX 1(d)

My Ref Scrutiny/ENV/RDB 13th February 2012 Councillor Mark Stephens, Executive Member, Room 278, County Hall, Atlantic Wharf, CARDIFF, CF10 4UW. Dear Mark, Re: Scrutiny of the draft Budgetary Proposals 2012-13 On behalf of the whole Committee I would like to thank you, Councillor Ford, Councillor McEvoy, Christine Salter and the Officers for attending the Environmental Scrutiny Committee meeting on the 10th February. The presentations and comments made were gratefully received. During the meeting the Committee considered sections of the ‘Draft 20012-13 Budget Proposals’ and ‘Draft Corporate Plan 2012-2014’ that were relevant to the Committee’s terms of reference.

The Committee specifically considered the Savings, Financial Pressures and Capital Programme items for each of the following service areas:

• City Services

• City Management

• City Development

• Regulatory & Supporting Services

Following detailed discussion the Committee made the following points in relation to the relevant service area budgets:

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APPENDIX 1(d)

City Services Members were encouraged by the proposal for a £14m capital investment into the Highway Asset between 2012 and 2015. They were, however, concerned about the stepped approach for increasing the revenue budget to a level that is sufficient to maintain the Highway Asset in a steady state. The Committee would, therefore, ask that City Services provides a summary of the revenue expenditure for 2010/11 and 2011/12. In addition to this they should also provide the projected revenue expenditure for 2012/13, 2013/14, 2014/15 and 2015/16. They would be grateful if this data is made available to the Committee before the Full Council meeting on the 23rd February.

City Management Members were pleased that the use of temporary toilets in the city centre had been a success and that the City Management Service Area was looking to use more of these in the future. The Committee would urge that funding is made available for these to be used in the city centre on a full time basis. As a minimum the temporary toilets should be available for all major events.

City Development At the meeting Councillor Ralph Cook raised a question regarding a traffic scheme which has been proposed in the Trowbridge ward. This later started a short debate on the merits of the current transport scheme prioritisation process and in particular why the information is only made available once a year for consideration. The Committee would like this information to be publically available throughout the year and that the information should be reviewed by the Committee once a year. Regulatory & Supporting Services Members asked about the proposed deletion of an Environmental Health post which was rejected as a saving. They were surprised that the post had been offered up in the first place and asked for an explanation. The Head of Service for Regulatory & Supporting Services replied by explaining that he had simply offered up a vacant post and that because the saving was rejected the role will now be re advertised. The Corporate Chief Officer for Communities added that Regulatory & Supporting Services are currently undertaking a service redesign project to look at improving environmental health services. She went onto explain that these proposals would be available for scrutiny in the near future. The Committee would like to have this service redesign exercise added to the new work programme.

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APPENDIX 1(d)

I trust that these comments will help inform the discussion on the Budget at the Executive Business Meeting on 16th February and the subsequent Budget taken to Council.

Yours sincerely,

COUNTY COUNCILLOR SIMON WAKEFIELD

CC to:

Councillor Rodney Berman Councillor Margaret Jones Councillor Lisa Ford Councillor Neil McEvoy Christine Salter, Corporate Chief Officer – Corporate Services Sarah McGill, Corporate Chief Officer - Communities Tara King, Chief City Services Officer Martin Hamilton, Chief City Management Officer Neil Hanratty, Chief City Development Officer Dave Holland, Head of Service – Regulatory & Supporting Services Phil Williams, Operational Manager – Strategic Planning & Development Management Claire Moggridge, Operational Manager – Major Projects Jon House, Chief Executive Joanne Blaney, Executive Office Manager, Clerk to the Council

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APPENDIX 1(e)

Cardiff County Council, Atlantic Wharf, Cardiff Bay, CF10 4UW Phone: 0292087 2573 Fax: 0292087 2579 E-mail: [email protected]

My Ref: T:Scrutiny/PRAP/Com Papers/2009 14.2.12 Date: 15 February 2012 Councillor Rodney Berman Leader County Hall Cardiff CF10 4UW Dear Rodney, Policy Review & Performance Scrutiny Committee: Scrutiny of the Corporate Plan 2012/14 and Budget Proposals 2012/13 Thank you for attending Committee on 14 February 2012 to facilitate scrutiny of

the Corporate Plan and the budget proposals as they relate to the committee’s

Terms of Reference. During discussion of the way forward the Members of the

Policy Review & Performance Scrutiny Committee expressed the following

observations and concerns and have asked that I relay them for consideration by

the Executive.

Corporate Plan 2012/14

• The Committee felt that the Corporate Plan has had a notable re-vamp and

wish to commend you on its readability. They felt there was evidence to

demonstrate progress and cited the indicator for the percentage of staff

having a Performance Development Review. They applauded the target of

100% and recalled that in recent years scrutiny of this indicator has revealed

a significantly lower outturn. The Council is to be commended.

• Members felt that for the People in Cardiff achieve their full potential outcome

within the Corporate Plan there was a notable absence of new performance

measures. Whilst they recognised that the schools service have traditionally

had a strong basket of performance indicators Members felt there was an

opportunity to develop them further. For example Members noted that page

10 of the Plan includes targets for 2015 that ‘no school will have fewer than

50% of pupils achieving the level 2 threshold ‘ and also that ‘standards at key

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APPENDIX 1(e)


stage 4 will continue to be raised’. They wish to suggest that both these

priorities are formalised as targets within the Success indicators table on

page 9. They welcomed your observation that an opportunity exists to re-visit

the absence of a key stage 4 target.

• The Committee would encourage the inclusion of targets as well as outturns

for 2010/11 in this Corporate Plan, to facilitate a better understanding of the

level of challenge created by future targets set out in the Plan.

• Members feel it will be important that responsibility for the Corporate Plan

priorities is clearly attributed within the action planning documents that will sit

underneath this Corporate Plan and will monitor this through service area

business plans.

• Some Members had concerns about the time taken to deliver a Disabled

Facilities Grant. I will refer this for consideration by the Community and Adult

Services Scrutiny Committee in their future work planning.

• The Committee expressed some concern that, as a high level strategic

document, it is vital in the current economic climate that the Corporate Plan

supports skills development, stresses the prevention of homelessness and

helps citizens in managing debt.

• Members also had concerns that so much of the Corporate Plan depends on

a successful partnership approach. Members recognised that the Plan very

much supported the aspirations of the overarching What Matters strategic

plan produced by the Integrated Partnership Board. They applaud the Council

for the excellent work underway with its partners and its recognition by Welsh

Government as a pioneer of partnership working. The Committee has noted

your concern that the commitment of partners in signing up to the agreed

partnership outcomes will need to be monitored, and felt this was an area in

which Scrutiny could assist.

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APPENDIX 1(e)


• Members had some concerns about the weight given to the new perception

measures on page 5 of the Plan. They felt that citizen responses could very

much depend on their experiences of the previous day rather than a balanced

experience over time and would urge caution in the use of perception

measures.

Proposed Budget 2012/13 Transformation

• The Committee was reassured to hear that the Council is now at a point of

achieving the transformation savings forecast, and that the costs associated

with those savings will reduce to £1.2m p.a.over the next 5 years.

Corporate Management

• From line 103 of the Council wide savings summary the Committee clarified

that savings of £50,000 are proposed around support for corporate

management rather than cutting further senior management posts. However

Members maintained that there were potentially further opportunities for

savings around secretarial support for senior managers and would urge this is

explored particularly as the organisation moves towards open plan office

arrangements.

• Members are supportive of cutting management overhead costs but are at the

same time keen to ensure that the Councils senior management resources

are not too lean to operate effectively.

Corporate Services

• The Committee were keen to explore whether the Council could consider

borrowing from the private sector and heard from the Corporate Chief Officer

that it is locked into a number of long term debts at a rate of 5.3%.

• Members noted the Corporate Chief Officers work with the Welsh pension

fund and felt that when the panel’s recommendations were published in due

Page 16 of 110

APPENDIX 1(e)


course it would be worthwhile scrutiny programming consideration of the

recommendations on a future work programme of this committee.

• Members highlighted an opportunity for the Council to support local

agreement in negotiating energy costs and would urge the Executive to

explore this matter.

• The Committee was seeking assurance that the obligations of the Local

Government Measure 2011 could be met despite rejecting a pressure bid for

additional resources in this area. They were reassured to hear that there is

money in reserves for both scrutiny and Member development.

• Members identified a risk of being insufficiently supported by in-house

procurement lawyers. Members noted that Councillor Stephens

acknowledged that resources may need to be put in place to deal with this

pressure and will monitor this in future.

• The Committee wishes to highlight that the proposed savings within the

Finance service area appear small compared to the budget for that service.

Members felt that given the Council’s approach to seeking savings across the

board there may be an opportunity for greater savings to be offered by the

service area tasked with delivering Council wide savings options.

Shared Services

• Members wish to formally record their observation that the annual process of

seeking savings from service areas across the board is constraining. They

feel the system is wrong and clearly all service areas are not in the same

position to identify realistic savings. To illustrate this the Committee would

direct you to lines 159 and 160 of the Savings Summary, observing that these

may be false offerings. They noted that the C2C budget is totally people

based, and to offer savings would be impossible without cutting services

delivered by people. Whilst the Head of Customer Services felt it was

important to look at the profile of callers rather than numbers of callers during

Page 17 of 110

APPENDIX 1(e)


the ‘out of hours’ period, the Committee would like further information on the

percentage of calls into C2C ‘out of hours’.

• The Committee noted that the response rate to the budget questions within

the Ask Cardiff survey was low in January 2012 when compared with previous

years. They took on board that a review of this service is planned and wish to

take up your offer of early engagement with the review on its forthcoming

work programme.

• Members were encouraged to hear the Executive Member indicate that in the

longer term it will be possible to make further savings within the back office

HR People services area.

• The Committee were similarly encouraged to hear that Central Transport

Services are now in a position to offer services to other organisations. I shall

pass this on to the Environment Scrutiny Committee for their consideration.

Finally the Committee have indicated that in future it will be seeking to revert to

an overarching scrutiny of the whole budget alongside the Corporate Plan. They

felt that the approach taken this year had constrained the opportunity for general

budget scrutiny.

Once again thank you for your time and commitment and that of Councillor

Stephens to the Policy Review and Performance Scrutiny Committee. Please

convey the Committee’s concerns and suggestions during the Executive’s

consideration of the budget proposals and Corporate Plan.

Yours sincerely

Page 18 of 110

APPENDIX 1(e)


Councillor Dianne Rees CHAIR, POLICY REVIEW & PERFORMANCE SCRUTINY COMMITTEE cc Councillor Mark Stephens, Executive Member Finance & Service Delivery Councillor Simon Wakefield, Chair, Environment Scrutiny Committee Councillor Ralph Cook, Chair, Community & Adult Services Scrutiny Committee Jon House, Chief Executive Christine Salter, City & County Treasurer . Philip Lenz, Chief People & Organisational Development Officer Joanne Blaney, Executive Office Manager.

Page 19 of 110

Appendix 1(f)

Budget questions included in the Citizens’ Panel e-survey (January 2012)

Summary The Ask Cardiff survey is distributed to 5,000 random households in Cardiff each year. The survey asks residents their views on how they feel the Council and partner organisations are performing. The following two questions relate to Council budget priorities and have been included in the Ask Cardiff Survey in 2007, 2008, 2009 and 2010. In the absence of a November 2011 Ask Cardiff survey the budget questions were also sent to the Citizens’ Panel as an e-survey in January 2012. Q1. The Council is committed to providing quality services that best meet the needs of local people. Please indicate whether you would like to see each of the services below increase, kept the same or decreased. • Community Safety and crime

prevention • Litter, street cleansing and recycling • Street repairs and traffic management • Regeneration of Local Areas • Social care services • Education • Attracting and retaining jobs • Employment skills and training

services

• Parks and Community facilities • Leisure, health and exercise facilities • Housing • Regeneration of the city centre and

Cardiff Bay • Libraries • Natural and built environment • Major events and venues

In 2012 respondents would most like to see community safety and crime prevention increased followed by attracting and retaining jobs. This is a change in order from the results for 2007 to 2010 with attracting and retaining jobs increasing in importance for residents and street repairs and traffic management services moving down the list.

In 2008, 2009, 2010 and 2012 respondents would also like expenditure increased on attracting and retaining jobs, whereas in 2007 respondents stated that they would prefer litter, street cleansing and recycling service to be increased.

Increase in service November

2007 November

2008 November

2009 November

2010 January 2012


crime prevention

(79.8%)

Community safety and crime

prevention (77.1%)


prevention (68.1%)

Street repairs and traffic

management (65.0%)


crime prevention

(95.5%) Street repairs

and traffic management

(69.2%)


management (64.5%)


management (64.2%)


prevention (61.6%)

Attracting and retaining jobs

(59.3%)

Litter, street cleansing and

recycling (66.1%)


(62.8%)


(64.0%)


(60.5%)


management (51.3%)

Page 20 of 110

Appendix 1(f)

Respondents specified that they would like to see expenditure fall on regeneration of the city centre and Cardiff Bay followed by major events and venues. These services follow the same ranking in 2007, 2008, 2009, 2010 and 2012. Between 2007 and 2010 respondents indicated that they would also like expenditure on housing to decrease, in 2012 this is replaced by natural and built environment.

Decrease in services November

2007 November

2008 November

2009 November

2010 January 2012


(16.4%)


(20.9%)


(19.6%)


(26.4%)


(41.9%) Major events and venues

(12.3%)


(11.6%)


(15.0%)


(20.2%)


(35.9%) Housing (7.9%)

Housing (5.9%)

Housing (6.4%)

Housing (9.6%)

Natural and built

environment (13.0%)

Q2. From the list of services in the previous question, which are the THREE most important areas on which the Council should concentrate its spending? The table below shows respondents’ three highest service priorities for improvement over the last five years. This reveals that community safety and crime prevention has consistently been in the top two areas highlighted for service improvement. Between 2007 to 2008 litter, street cleansing and recycling was the second most quoted service area, with attracting and retaining jobs featuring in the top three in 2009, 2010 and 2012. Education also features in the top three priorities in 2007 and 2012.

Nov 2007 Nov 2008 Nov 2009 Nov 2010 January 2012

1st Highest Priority


crime prevention


crime prevention


crime prevention


crime prevention


jobs

2nd Highest Priority

Litter, street cleansing

and recycling


recycling


Street repairs and

traffic management


crime prevention

3rd Highest Priority

Education Street repairs and traffic

management


recycling


jobs

Education

Page 21 of 110

Appendix 1(f)

The table below shows respondents’ three lowest service priorities for improvement over the last five years. Major events and venues has been a low priority for improvement between 2007 and 2012. Regeneration of the city centre & Cardiff Bay is also highlighted by respondents’ as an area that should not be classed as a priority. Natural and built environment and libraries are other areas that were not deemed as priority areas by respondents in previous years with leisure, health and exercise facilities featuring in 2012.

Nov 2007 Nov 2008 Nov 2009 Nov 2010 January 2012

1st Lowest Priority





2nd Lowest Priority

Natural and built

environment


Cardiff Bay




3rd Lowest Priority


Cardiff Bay


Libraries Leisure, health & exercise facilities

Page 22 of 110

Appendix 1(f)

Detailed results January 2012 – 237 respondents Q1. The Council is committed to providing quality services that best meet the needs of local people. Please indicate whether you would like to see each of the services below increase, kept the same or decreased. Council Services Percentage

Increased Kept the

same Decreased Community safety and crime prevention 95.5 0.0 4.5Attracting and retaining jobs 59.3 36.8 3.9Street repairs and traffic management 51.3 42.0 6.6Social care services 46.5 46.0 7.5Employment skills and training services 45.3 47.1 7.6Education 41.7 55.6 2.7Regeneration of local areas 40.5 50.7 8.8Litter, street cleansing and recycling 37.5 59.5 3.0Housing 25.6 61.7 12.8Parks and community facilities 22.9 72.2 4.8Leisure, health and exercise facilities 18.2 69.7 12.1Natural and built environment 14.7 72.3 13.0Major events and venues 12.1 51.9 35.9Libraries 11.5 78.4 10.1Regeneration of the city centre and Cardiff Bay 11.0 47.1 41.9

Desired changes to Council Services

95.5

59.3

51.3

46.5

45.3

41.7

40.5

37.5

25.6

22.9

18.2

14.7

12.1

11.5

11.0

36.8

42.0

46.0

47.1

55.6

50.7

59.5

61.7

72.2

69.7

72.3

51.9

78.4

47.1

3.9

6.6

7.5

7.6

8.8

12.8

4.8

12.1

13.0

35.9

10.1

41.9

3.0

2.7

4.5

0% 20% 40% 60% 80% 100%

Community safety and crime prevention


Street repairs and traffic management

Social care services

Employment skills and training services

Education

Regeneration of local areas

Litter, street cleansing and recycling

Housing

Parks and community facilities

Leisure, health and exercise facilities

Natural and built environment


Libraries


Increased Kept the same Decreased

Page 23 of 110

Appendix 1(f)

Q2. From the list of services in the previous question, which are the THREE most important areas on which the Council should concentrate its spending? Respondents were then asked which three areas they thought were priority areas for Council spending. A system was adopted by which three points would be awarded when a service was specified as a top priority, 2 points for second and 1 point for being the third most important priority. Once completed the number of points awarded to each service was calculated as a proportion of all points available in order to generate a ranked list of priority areas for spending. 1st (X3) 2nd (X2) 3rd (X1) TOTAL %age Attracting and retaining jobs 165 84 20 269 19.3Community safety and crime prevention 93 72 26 191 13.7Education 102 58 29 189 13.5Social care services 90 32 28 150 10.8Street repairs and traffic management 75 32 20 127 9.1Employment skills and training services 39 60 19 118 8.5Litter, street cleansing and recycling 51 36 20 107 7.7Regeneration of local areas 24 26 24 74 5.3Housing 18 22 12 52 3.7Parks and community facilities 15 12 14 41 2.9Libraries 6 8 5 19 1.4Natural and built environment 6 10 3 19 1.4Leisure, health and exercise facilities 6 6 6 18 1.3Major events and venues 6 4 2 12 0.9Regeneration of the city centre and Cardiff Bay 3 4 2 9 0.6

The figure overleaf shows attracting and retaining jobs to be the number one priority for Cardiff residents with this service being allocated just under a fifth (19.3%) of all available points.

Page 24 of 110

Appendix 1(f)

Respondent priorities for Council spending

19.3

13.7

13.5

10.8

9.1

8.5

7.7

5.3

3.7

2.9

1.4

1.4

1.3

0.9

0.6

0.0 5.0 10.0 15.0 20.0 25.0


Community safety and crime prevention

Education

Social care services

Street repairs and traffic management

Employment skills and training services

Litter, street cleansing and recycling

Regeneration of local areas

Housing

Parks and community facilities

Libraries

Natural and built environment

Leisure, health and exercise facilities



Percentage of all points awarded

Community safety and crime prevention, education along with social care services received significant proportions of the points available although major events and venues alongside regeneration of the city centre and Cardiff Bay were described as a top three spending priority in under one percent of cases.

Page 25 of 110

Appendix 2 WELSH LOCAL GOVERNMENT SETTLEMENT 2012/13 List and estimated amounts of Grants for Wales Existing Grant name 2012/13

£000 Animal Health and welfare framework 1,000 Appetite for Life Specific 2,400 Cardiff Bay legacy funding 7,800 Community cohesion fund 200 Community fire safety 2,400 Community Learning 6,000 Concessionary Fares Reimbursement 61,200 Families First 42,000 Family Literacy, Language and Numeracy LEA 2,300 Flying Start Revenue 39,000 Foundation Phase 95,000 Funding for Youth Work Training in Wales 500 Highways Borrowing Initiative 4,000 Induction 400 Language and Play LEA *TBC Learning Disability Resettlement 32,600 Learning Pathways 14-19 16,600 Local Transport Services 11,400 Mergers and collaboration budget 3,900 Minority Ethnic Achievement 10,000 National Exercise Referral Scheme 3,500 Public Finance Initiative 32,500 Post 16 Provision is Schools 114,800 Post-16 Special Schools and SEN Out of County 29,000 Primary School Free Breakfast Initiative 12,700 Pupil Premium 32,000 Resources for Local Planning Authorities 1,500 Revenue Support for buses *TBC School Effectiveness 24,100 School Uniform Financial Assistance Scheme 800 School based counselling service 4,800 Social Care Workforce Development Programme *TBC Supporting People 136,000 Sustainable Waste 71,000 The Grant for the Education of Gypsies and Travellers 1,000 Tidy Towns 1,400 Unlocking the Potential of Special Schools *TBC Welsh Medium Bilingual 5,000 Welsh Network of Healthy School Schemes 900 Youth Service Revenue 2,500 Note: The information shown above details where the estimated amounts for 2012-13 are known. Formal notification of grant allocations is a matter for the relevant policy area within the Welsh Government.

*TBC – To be confirmed

Page 26 of 110

Appendix 3 REVENUE RESOURCES REQUIRED FOR 2012/13

£000 £000

Adjusted Service Area budget (after WG transfers) 534,240 Add: Employee costs 5,366 Service expenditure and income realignments 2,722 Capital financing 1,733 Increase in pupils numbers 950 Landfill tax and carbon allowances 577 Specific grant protection 200 Third party waste income 250 Fire levy 190 11,988Previous year commitments: Waste round changes 440 Mechanical sweepers 35 Other 83

558Exceptional inflation: Energy 640 Fuel 200 Out of County placements 122 Other 50 1,012Other 258 548,056Less: savings from services (14,379) 533,677Add: new financial pressures 11,954Base Budget for 2012/13 545,631

Page 27 of 110

APPENDIX 4

Adult Services 4,205 2,655 1,550Children's Services 757 757 0City Development 473 420 53City Management 504 334 170City Services 1,999 1,902 97Communities 910 735 175Corporate Management 20 20 0Corporate Services 974 751 223Education 974 974 0Shared Services 3,172 1,091 2,081Grand Total 13,988 9,639 4,349

Additional Financial Pressures

500750450400

15200

Total Accepted Financial Pressures 2012/13 11,954

Additional Investment in Schools (Pupil mobility)

Financial Pressure Bids £000

Accepted Financial Pressures

£000

Service Area

Central Business District Phase 2General Investment in TransformationTransformation Legacy StructureInvestment in Special Schools

SERVICE AREA FINANCIAL PRESSURES SUMMARY 2012/13

Rejected Financial Pressures

£000

Investment in Nursery Schools

Page 28 of 110

APPENDIX 4

No Service Area Pressures Title Pressure Accept Reject£000 £000 £000

1 Adult Services Accept

Occupational Therapy - 3 fte's plus equipment costs - bid is for 1) 2 x fte Occupational Therapists to review existing double handed care packages (approx 160 - 170 people) and to manage the outcomes. Also, to review all clients use of ceiling tracked hoisting single handed. 2) £40k additional specialist equipment costs and 3) 1 x fte Occupational Therapist to review / identify existing service users in receipt of care package as potential for enablement.

148 148 0 Red Red-Amber


Cardiff Alcohol and Drug Team (CADT) - 2 x Social Work Assistants - 1) 1 post to support the work of case managers and to help develop a more effective review function. 2) 1 post to be based on the frontline of the Single Point Of Entry (SPOE) to help achieve an effective local authority presence in the multi-disciplinary contact function, screening, brief interventions, advice giving, referral into Care Pathways etc.

57 57 0 Red-Amber Amber-Green


Cardiff Alcohol and Drug Team (CADT) - 1 x Counsellor - this post would help the service deal with the waiting list, which is currently over 100 individuals who on average wait 2 to 3 months for allocation to a Counsellor from referral stage.


4 Adult Services Accept Funding to VEST - Required to support additional transport costs in servicing the luncheon clubs operating at

Wyndham Street, Moorland Rd and Adamsdown. 10 10 0 Red-Amber Red-Amber

5 Adult Services

Partially Accept

Demographic Pressures / Fees - Projected population figures indicate that the population of Cardiff and in particular the over 85 population will continue to increase in the coming years. To reflect this a sum of £1.1m has been allocated to reflect the anticipated service implications that will result from these pressures in 2012/13. In addition a sum of £1.3m has been allocated to reflect both contractual fee increases and to meet pressures for fee increases from private sector providers, particularly in relation to residential and nursing home care. Any proposed fee increases may need to be reviewed following the potential impact of the judgements of recent legal cases and the outcome of the advice sought from Counsell regarding residential and nursing home fees. The level of funding provided will significantly reduce the residual risk.

3,950 2,400 1,550 Red Red

4,205 2,655 1,550

6 Children's Services Accept

Residence and Special Guardianship Orders - Funding of £200k is required to meet increased costs of Residence Order and Special Guardianship allowances following Court Judgements elsewhere in the UK that have clarified statutory requirements of local authorities.

200 200 0 Red Red


Intake & Assessment Capacity - the Intake & Assessment team receives, assesses and responds to all enquiries and concerns in respect of the welfare of children not already known to the service. There has been a 25% increase in the number of referrals received in the last 3 years. In addition to increases in previous years this proposal includes funding for 8 Social Workers, 1 Duty Manager and 3 Business Support Officers.

377 377 0 Red Red


Enhanced support for Local Safeguarding Children Board (LSCB) - creation of 2 posts, a LSCB Development and Co-ordination Post and a Business Support officer post will supplement existing capacity and enable key responsibilities of the LSCB to be fulfilled as set out in statutory guidance. This will include work on audit, case reviews, performance management, and the co-ordination and chairing of complex and sensitive meetings including meetings related to the investigation of allegations of abuse made against professionals. This latter responsibility has been carried out under considerable pressure for some time. The number of such meetings is relatively high reflecting the number and range of professionals employed across the city in work with children.

75 75 0 Red Red

TOTAL ADULT SERVICES

Residual Risk

EIA

COUNCIL WIDE FINANCIAL PRESSURES SUMMARY 2012/13

Value of PressureAccept / Reject

Page 29 of 110

APPENDIX 4


Residual Risk

EIAValue of Pressure

Accept / Reject


Homeless 16-17 Year Olds - This proposal is for £35k funding for 1 social worker post to provide additional capacity to deal with an increase in referrals of young people aged 16/17 who are homeless, require assessments and in some cases provision of support services to meet their needs. The increase and response reflects changes required to ensure compliance with Court Judgements elsewhere in the UK and Government guidance.

35 35 0 Red Red

10 Children's Services Accept Family Support Services - Grant leading to commissioning of family support services for fathers in recognition of a

previous Council motion. 70 70 0 Red-Amber Red-Amber

757 757 0

11 City Development

Partially Accept

Community Infrastructure Levy (CIL) - the CIL is a new legislative mechanism which will allow the Council to generate funds for a wide range of infrastructure through the planning process. It fundamentally changes, but does not fully replace the Section 106 process. In order to put a CIL in place the Council needs to: 1) prepare an infrastructure plan to identify the key infrastructure required to secure and support the sustainable growth of the city and its economy, and 2) test the market feasibility of the level at which the CIL is to be set, to ensure that it is affordable and does not prohibit development. The funds requested would support a dedicated member of staff to manage the project and would also support some of the independent cost analysis work required to test market viability. The legislation allows for funds generated to be used to support the administrative requirements of CIL once the system is in place, so the funds requested here are for the early initiation phases. In due course the system could be self funding. The accepted pressure reflects a part year allocation in relation to the introduction of the initiative.

100 60 40 Red-Amber Green

12 City Development Accept

Sustainable Homes Project - it is proposed that a project focussing on 'green / sustainable homes' be developed as a central project in the Council's new sustainability vision and programme. This project will utilise existing schemes and incentives, including the Green Deal (due to be launched in October 2012), Feed-in-tariffs for Photovoltics (currently operational,) the Renewable Heat Incentive and other funding sources to (a) retrofit and generate energy from Council owned domestic and non-domestic buildings and (b) to develop a package, to be administered by the Council, through which citizens of Cardiff will be able to retrofit or generate energy from their own homes. A dedicated officer will be needed on a part-time basis to take the project forward, and the Council will need external financial and technical advice on the best model for delivery. This reflects a part year impact on funding.



Source Cardiff - Cardiff Council is committed, through the Source Cardiff initiative, to enhancing the ability of local businesses to bid and win procurement opportunities. The intention is to focus on opportunities from the Council in the first instance, and then to extend to include other public sector organisations and broader business to business opportunities both locally and further afield. The initiative will have a number of core components: 1) to improve access to Council procurement opportunities through supply chain development. 2) to directly support the development of local businesses to improve their competitiveness and ability to respond when bidding for procurement opportunities. 3) to encourage local companies to collaborate to buy together and to sell together, both locally and further afield. A dedicated officer is required to deliver this activity plus a budget for marketing, promotion and events.


TOTAL CHILDREN'S

Page 30 of 110

APPENDIX 4


Residual Risk


Accept / Reject

14 City Development

Partially Accept

Local Development Plan Preparation (LDP) and Examination - statutory requirement to prepare and adopt a LDP, which sets out the Council's objectives for the development and use of land in Cardiff to 2026. Funding of £800k (including existing base budget) over the next four financial years will be needed to meet statutory requirements and support the preparation and examination of the LDP and commitments made in the LDP Delivery Agreement, which sets out a timetable agreed with the Assembly for preparation of the LDP. Main expenditure headings over the next four years include developing evidence base, site assessment studies including transportation analysis, consultation/engagement, publicity/printing costs, examination/Planning Inspectorate costs and legal/other independent advice costs. These projections take into account revised timescales for preparation of the Plan. In addition, it is important to note that these are the best estimates at the present time and as the process unfolds additional resources may be required to ensure a sound Plan at examination.



Cardiff & Co - Following agreement with the Welsh Government on the future of Cardiff Harbour Authority funding, Cardiff & Co has lost income as a result of the cut in grant. Consequently the Council is providing additional resources to ensure Cardiff & Co continues to operate at its current level.


473 420 53

16 City Management Reject

Archaeological Report - Cardiff Castle - during the development phase of the Cardiff Castle Interpretation Centre, there was a requirement to fund Glamorgan Gwent Archaeological Trust to research and produce a document detailing all the artefacts that were discovered during the excavation of the site; the cost for this is £140k. This was a binding condition of the Planning / Scheduled Ancient Monument Consent which is now overdue.

140 0 140 Amber-Green Green

17 City Management Accept Museum Project - this sum is to place the museum on a sustainable funding basis. 92 92 0 Red Green

18 City Management Accept

Tourism Development - Tourism Development and Visitor Services had expected income from the Valley's Partnership of £35k. However due to changes in management the arrangement previously negotiated was not forthcoming, resulting in an income shortfall of £35k. Unless rectified, this shortfall will prevent the continuation of important research such as the Cardiff Visitor Survey and a perceptions study. It will also impact on the service's ability to undertake special studies to support specific projects, past examples include work required to support the development of a Convention Centre and Hotel Demand Study. Support for cruise ship development will also need to be reduced.



Control of Japanese Knotweed and other Invasive Weeds on Council's Greenspaces - to control Japanese Knotweed and other invasive weeds which are established and spreading in many of the Council's greenspaces and present a risk to both private land and Council facilities. This programme plans to minimise these risks by initially undertaking surveys of all the city's greenspaces to assess the extent of the problem; it will then use this information to form the basis of a citywide herbicide treatment programme which will have to be delivered over a number of years. It is important to note that it is anticipated that this project will involve the use of a range of volunteers and community groups and also delivers the additional benefits of increasing both the biodiversity of the many Cardiff greenspaces and the area of accessible greenspace available to the residents of Cardiff for recreational use.



St David's Hall - Exhibitions - A sum of £37k is required in order to support exhibitions at SDH. In the light of the development of the new Contemporary Arts and Design Gallery in October 2011 the importance of maintaining adequate support for this key element of the project is required.

37 37 0 Green Green


Events Support - St Davids Day / Mardi Gras / Speedway / Cardiff 10K run - To provide mainstream funding for these events which were previously funded from Corporate Initiatives. 90 90 0 Red-Amber Red-Amber


Ice Hockey Development - To provide mainstream funding for the Cardiff Devil's foundation which was previously funded from Corporate Initiatives. 30 30 0 Amber-Green Green

TOTAL CITY

Page 31 of 110

APPENDIX 4


Residual Risk


Accept / Reject


Contemporary Art Community Interest Company - To support the development of new arts projects designed to secure a step change in the City's cultural assets and increase cultural tourism. 50 50 0 Red-Amber Amber-Green

504 334 170

24 City Services Reject

Wheeled bin and caddy provision and spares - currently there is no capital budget or revenue budget for the provision of maintenance of wheeled bins, kerbside caddies and kitchen caddies. With the September 2011 collection changes this has meant the city wide provision of caddies and a major increase in communal bin provision. A budget will be required for maintaining current service levels, providing repairs and replacement for waste management, repairs and requests, to support housing stocks and also further wheeled bin expansion will be required in 2012/13 as demand in the tri-bag areas increases as a result of the collection changes.

97 0 97 Amber-Green Red-Amber

25 City Services Accept

Highway Maintenance - additional funds need to be invested in the Council's highway network in order to improve the quality of roads, reduce the current rate of deterioration; reduce insurance claims; reduce the number of complaints, and improve Cardiff's performance against its statutory performance indicators. The revenue costs are required to maintain the network to a higher steady state year on year and is based upon the investment strategy option appraisal where revenue increases compliment the proposed Capital Programme. This is the first year in a phased approach to increase investment in roads and pavements from £4.6m in 2011/12 to £6.9m in 2016/17 through a mixture of capital and revenue. This will ensure that funding is available to maintain these assets at a steady state over a twenty year period.



Winter Maintenance - In the past decade as milder winters prevailed the Winter Maintenance budget has afforded savings profiles. In December 2010, Cardiff experienced its worst snowfall since 1983, and the coldest December temperatures for 100 years. In response, the Executive approved the implementation of an action plan which was targeted at improving the resilience of the Council in future snow events. The demand for additional street based equipment, salt, bins, shovels, mini spreaders and flexible vehicle management (snow tyres, seasonal replacement on many of the Council fleet) will outstrip resources year on year as most are consumable or susceptible to ageing and damage (salt bins). Higher salt stocks are now also a pre-requisite of Welsh Government. To improve the resilience, it is necessary to purchase additional equipment on an annual basis to provide support across service areas to facilitate the improvement. The additional budget sought here (£100k) enables this equipment to be procured. Also, this figure includes the purchase and maintenance (replacement and refilling with salt) of a further 200 salt bins in 12/13.



Highway Maintenance of the New public realm in the city centre - New high quality public realm creating additional pedestrianised areas has been provided in the city centre. However, appropriate funds to maintain these areas has not been identified. Funds are required to inspect and maintain the adopted highway including the paved areas, drainage and street furniture. As the public realm is new, a relatively small amount of maintenance will be required in 2012/13, with maintenance requirements increasing thereafter.

42 42 0 Amber-Green Red-Amber

TOTAL CITY

Page 32 of 110

APPENDIX 4


Residual Risk


Accept / Reject


Post-sorting Residual Waste Disposed at Household Recycling Centre's (HWRC) - Currently there is no budget to undertake the post-sorting of residual waste disposed at the Council's Household Waste Recycling Sites. Trials completed in 2011 show that by post sorting this material 50% of it can be recycled. This activity has significantly contributed to 2011 increased performance. The alternative is to landfill the waste, which could increase the risk of the Council's Landfill Allowance target being breached (which could potentially result in a fine equivalent to £400 / tonne). In addition, each tonne of material disposed to landfill is subject to Landfill Tax at the rate of £64/tonne (in 2012/13). It is proposed to post sort the residual waste received at the HWRC's in 2012/13, estimated at 13,000 tonnes, which will achieve a diversion of approximately 50% of this material from landfill. It should be noted that in the first six months of 2011/12 this activity has enhanced the total municipal recycling performance by circa 4% and is a significant factor to enabling the authority to achieve or exceed the 52% target for 2013.



Increase in Agency Worker costs - in accordance with Agency Workers regulations, with effect from 1st October 2011, the cost of Agency Workers will be the same as that of Council employees once they have been working for a continuous period of 12 weeks. The additional costs relate to the estimated number of Agency Workers (60) to be used on a daily basis in Waste Management and Street Cleansing in 2012/13.



Compliance with Health and Safety Executive (HSE) Improvement Notices - The HSE has recently undertaken an audit of waste collection operations. The HSE paid particular attention to the Council's working procedures, risk assessments, etc in respect of how it manages and controls reversing activities, especially as a result of the occurrence of reversing incidents over recent months. An improvement notice has required the undertaking of route risk assessments for all waste collection rounds. In conjunction with the Council's Central Transport Service (CTS), a review of the Council's reversing procedures has been undertaken and it is recommended that a camera recording system is installed on the Council's waste collection vehicles & mechanical sweeper vehicles with the objective of reducing reversing related accidents and to provide a record and assurance of safe work undertaken. An additional benefit would be that the system could be used to successfully defend unjustified claims made against the Council regarding vehicle related incidents. It is recommended the cameras are installed on the refuse vehicles in 2012/13 and on the mechanical sweeper fleet in 2013/14.



Cleansing Services - There is a high demand for visible services on the streets to clean litter, gum and grime from well used shopping areas and community focussed areas that are causes for concern for litter and grime. A full review is required to consider how the existing resources for local cleansing and community are best distributed and initial findings are that demand far outweighs current arrangements. Additional resources of £170k are needed to target busy areas and neighbourhood communities in most need. A criteria based system will be developed to prioritise those areas in most need. In addition, staff employed will be tasked to report multiple visible service matters and conduct an ambassadorial role in customer care for the Council.


1,999 1,902 97

32 Communities RejectIncome shortfall - targeted elderly & renewal area - A reduction in Capital funding on these schemes will reduce the scope for work to be undertaken in this area with a consequent shortfall in recovery of costs. 75 0 75 Red-Amber Amber-Green

33 Communities Accept

Growth in Homelessness - homelessness continues to rise with those in temporary accommodation as at Sept 2011, totalling 460 units, compared with 350 in January 2010. The prevailing economic conditions and the impact of the Housing Benefit Changes are likely to continue to see homelessness rise. This is a trend across Wales. The provision of temporary accommodation has been completely remodelled following the loss of the £1.7million Welsh Government Grant in 2010, at the present time it is likely that the Council's contribution to the new scheme may rise significantly.

250 250 0 Red-Amber Red

TOTAL CITY SERVICES

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APPENDIX 4


Residual Risk


Accept / Reject

34 Communities Partially Accept

Neighbourhood Learning Provision -. Financial Support from the Welsh Government for Adult Community Learning has previously been utilised exclusively by Neighbourhood Learning and has enabled a range of accessible learning opportunities to be offered across the city. Between 2011-2015 this funding is to be progressively targeted to Welsh Government specified groups, thereby excluding some learners currently benefitting from this funding. Instead the funding will be made available to other service areas such as basic skills & ESOL, Local Training and Enterprise, and Youth Service.The funding shift will significantly reduce the amount of grant received by Neighbourhood learning necessitating a change in the level and range of learning offered to non WG prioritised learners. Under this bid the service would be able to offer a concession to non Welsh Government prioritised learners within a revised fee strategy and limit the impact of Welsh Government grant changes on the quantity and range of provision offered.

300 200 100 Amber-Green Red

35 Communities AcceptCrime and anti-social behaviour reduction - Additional funding to combat crime and anti-social behaviour at a neighbourhood management level and with our partners through the community safety mechanism. This includes additional activity on alleygating and partnership projects such as 'Operation Mistletoe'.

200 200 0 Red-Amber Red-Amber

36 Communities AcceptChanges to licensing controls introduced by the Police Reform & Social Responsibility Act 2011 - The changes under this act will reduce the income to the service area and increase expenditure. The overall impact is anticipated to be in the region of £50k.

50 50 0 Red Amber-Green

37 Communities AcceptPlay through the medium of Welsh - in recognition of a previous scrutiny report we are increasing provision in this area (this is an addition to the current Menter Caerdydd allocation). 35 35 0 Red-Amber Red-Amber

910 735 175

38 Corporate Management Accept

Tafwyl Festival - following positive feedback from public consultation, the festival will this year become part of the Cardiff festival in partnership with Cardiff Council 20 20 0 Green Red-Amber

TOTAL CORPORATE MANAGEMENT 20 20 0

39 Corporate Services Accept

County Council Election - May 2012 - This pressure is needed to conduct County Council elections on 3rd May 2012. 274 274 0 Red Red

40 Corporate Services

Partially Accept

Procurement Lawyers for Transformation Work - to meet the medium term demands of the Category Management Programme, 3 additional Procurement lawyers and 1 Legal Assistant are proposed. This should achieve sufficiently robust capacity to support the projects and work appropriately in partnership with external legal advisers on the most complex projects. As the workload links to the development of the category management plans, this accepted pressure for one additional lawyer will enable work to be progressed in this area with potential for further review.


41 Corporate Services Reject

Executive & Committee Paper Printing costs - an increase in the number of reports being considered at the Council's committee's together with revised printing arrangements means that there is a need for an increase in the budget allocated to Democratic Services for printing purposes. For example in 2010/11 approx £21k was spent on printing, to Sept 2011 £23k had been spent during 2011/12.



Enterprise Architecture Revenue Implications - As a part of the Enabling Technology Project the Capital Programme has recognised the Council's requirement to have a fit for purpose ICT Enterprise Architecture from which to deliver its services. This pressure bid is to meet the maintenance and licence costs of putting in place the essential architecture framework and capability, together with the necessary ICT to deliver the transformation projects. In the longer-term, savings should accrue as older systems are deleted within Internal Services.

400 400 0 Red Green

TOTAL COMMUNITIES

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APPENDIX 4


Residual Risk


Accept / Reject


Scrutiny Development - This proposal would see the appointment of an additional Principal Scrutiny Officer plus a modest budget increase to service any new panels or committees. The benefits will be - 1)Council can respond effectively to needs outlined above. 2) Better support to Scrutiny members. 3) Council better prepared to discharge its share of the burden of partnership. 4)Scrutiny will be equipped to engage with external regulators to reduce the financial burden of external regulation through increased Scrutiny regulation.

60 0 60 Amber-Green Amber-Green


Elector Absent Vote Refresh - This proposal is to maintain the integrity of postal voting a new regulation has been introduced which requires existing postal and proxy voters to refresh their details on a three yearly basis. 27 27 0 Red-Amber Red

TOTAL CORPORATE SERVICES 974 751 223

45 Education Accept

Estyn Inspection recommendation to improve attendance, reduce exclusions and reduce NEET's - Followng the Estyn inspection of the quality of local education services for children and young people in Cardiff in January 2011 the resulting Post Inspection Action Plan (PIAP) outlined actions with regards to reducing exclusions, reducing the number of young people not in Education, employment and training and improving behaviour in schools. This is a bid of £500k to enable secondary schools to offer additional facilities and resources within their schools for managing pupils behaviour (Stage 3 of the strategy). This will be prioritised to those schools in challenging areas and will have a major impact on the ability of schools to manage behaviour and significantly reduce exclusion rates. In addition to this the service will work with schools to rationalise the provision at Stage 4 of the strategy with the development of pupil alternative curriculum centres at Key stage 3 and greater opportunities for flexible learning at Key Stage 4. This will have a major impact on attendance and exclusion rates which will have a positive impact on NEET's.


46 Education Accept

Increased demand for Specialist Resource Base (SRB) Provision including Early Years (Delegated Schools) - Projections of pupils progressing from Primary into Secondary schools with ASD are indicating that the September 2012 cohort is unusually large: Bishop Of Llandaff Marion Centre - two SRB classes instead of one requiring an additional 1 fte Teacher and 2 fte Teaching Assistants. Cost £85k p.a. – 12/13 costs 7 months £50k, Cathays High School SRB – additional pupils requiring 2 additional TA’s – Cost £40k p.a. – 12/13 costs for 7 months, £23k Cantonian High School SRB - additional pupils requiring 2 additional TA’s – Cost £40k p.a. – 12/13 costs for 7 months £23k. Primary phase SRB’s – Headteachers have expressed concern’s regarding the pupil to teacher ratio being adequate for pupils with very significant learning and medical needs. When provision is compared with special schools the ratio of staff for pupils with similar needs is 1fte teacher and 2 fte Teachers Aide, compared to 1 fte Teacher and 1 fte Teachers Aide in Primary SRB's. To be consistent across all settings will require an additional 5 fte Teachers Aides. Cost £100k p.a. – Costs for 12/13 for 7 months - £58k.


47 Education Accept

Attendance Strategy (Delegated Schools) - Within the financial settlement for 2011/2012 the Council agreed an additional amount for delegated school budgets to allow the employment of Attendance Officers in Secondary Schools along with the delegation of responsibility for steps 1 to 3 of the Attendance Strategy. Progress has been made on this issue but additional resources are required to achieve the Council’s ambitious targets for attendance in the form of Attendance Officer posts. The distribution of funding created the equivalent of 24 posts in the 2011/2012 financial year. This bid is for an additional 10 Attendance Officers with a cost of £300k in a full financial year. For the academic year from September 2012 the cost will be £175k.


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APPENDIX 4


Residual Risk


Accept / Reject

48 Education Accept

Demountable Buildings at Cathays High School and Bishop of Llandaff High School - The education service currently pays rental on demountable buildings both at Cathays High School and the Bishop of Llandaff High School. The building at Cathays provides essential catering accommodation serving hot meals to the pupils at the school. The building at Bishop of Llandaff currently provides accommodation for the teaching and learning of pupils with additional Learning needs. To enable the continued payment of rental on these essential accommodation the service would require resources of £145k per annum. Currently there is no revenue funding available for the payment of the rental of these demountable buildings resulting in an overspend on budgets.


974 974 0

49 Shared Services

Partially Accept

IT Refresh - Significant funding is required to improve efficiency across the Council in IT. This is the first year of a phased programme to deliver a refresh of IT across the Council. The initial allocations for 2012/13 and 2013/14 are supplemented by capital programme allocations. Within three years £1.8m of funding is identified with an element of funding coming from the HRA. The scope of the IT refresh programme covers the server / storage replacement programme, a desktop replacement programme, server/desktop software maintenance programme and distributed network switch replacements.

1810 500 1,310 Red-Amber Green

50 Shared Services Accept

Connect to Cardiff (C2C) additional 5 fte - as C2C develops and takes on more services, Customer Service Representatives reach a ‘saturation’ point and it is not feasible to add more without compromising service delivery. This trend has led to the need to ‘un-blend’ calls so a productive and efficient service can be provided to the customer in a contact centre environment. This involves very intensive resource management and due to call volumes, C2C is struggling to achieve KPIs in relation to abandoned calls and time taken to answer calls. In order to take on additional services through the redesign/transformation process, C2C need a robust platform upon which they can build. Without this, intended resource for new services will effectively be absorbed by current demand. Three temporary fte have been agreed until year end but C2C are seeking funding for an additional five fte on a permanent basis from April 2012 to address the pressures across the contact centre. In the past, C2C could handle peaks and troughs but with sustained high volumes the matter needs to be addressed as a priority.



Customer & Business Knowledge (C&BK) external income target - the Council's C&BK Unit have an external income target of £31k. This was initially based on advertising revenue from the LED Video Screen on Queen Street. To continue to meet this target, external contracts were taken on with Bridgend Council, South Wales Police and Powys Council. The total gross value of these, together with a small number of other external contracts, totalled £82k in 2009/10 and £79k in 2010/11. Due to financial constraints, Bridgend has scaled down requirements for 2011/12 (to £14k gross) and will not continue from 2012/13; SWP are unable to continue their contract; and Powys are unable to confirm if they will have funding. In 2010/11, whilst the gross income was £79k, projects incurred expenditure of some £61k (printing/postage/data input).


52 Shared Services Reject

Utilise low used school minibuses and adult services fleet - employ drivers so that these vehicles can be used on School Transport & Adult services and by other schools instead of hiring in vehicles. This is an invest to save opportunity which will enable the Council to utilise vehicles it currently owns and double trip them on home to school and Adult Services runs. They could also be used to provide additional services for Schools and other groups/service areas at extremely competitive rates. The funding would be used to employ drivers and escorts to drive these vehicles and become licensed coach operators. From discussions with Monmouth Council who operate their own fleet and have demonstrated significant savings from doing so, they have also generated large income streams from hiring the vehicles out in the evening and on the weekend. This could potentially save £200k per year on Home to School Transport not including the potential income that will be generated from private hires of these vehicles.

749 0 749 Green Green

TOTAL EDUCATION

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APPENDIX 4


Residual Risk


Accept / Reject


School Re-Organisation - Home to School transport - the funding is required to enable the Council to deliver its statutory requirement to provide free home to school transport for pupils who live 2 or more miles (primary aged) and 3 or more miles (secondary aged) from their nearest appropriate catchment area school. As a result of the proposed schools re-organisation the following funding for new transport will be required:- Tan Yr Eos (£13k 2012/13), Ty Gwyn (£60k 2012/13 ), Plasmawr/Glantaf (£55k 2012/13), Bishop of Llandaff Marion Centre (£10k 2012/13) , new 3rd Welsh Medium High School (£43k 2012/13) and other costs of £13k in 2012/13.



Llanishen High School Transport (Llanedeyrn HS closure) - new free school transport for pupils transferring to Llanishen HS living in the Llanedeyrn, Pentwyn and Pontprennau areas from September 2011 up to and including pupils transferring in September 2018. There will also be capacity for existing pupils already attending Llanishen to pay a fare each journey. This is as a result of the phased closure of Llanedeyrn HS and pupils living in the areas above being directed to Llanishen HS where there are no current direct Cardiff Bus Service Routes.



Independent Travel Training scheme - this proposal will enable the Independent Travel Training Scheme to continue after the loss of Welsh Government grant and to reduce the cost and numbers of pupils (SEN statemented & other) being transported in taxis & minibuses. It will also enable the scheme to be expanded to train vulnerable adults further reducing the cost burden on the Council.


56 Shared Services

Partially Accept

Training for Home to School Passenger Transport contracted drivers and escorts - training is required for drivers and escorts undertaking home to school and Passenger Transport contracts in order to fulfill the Council's responsibilities. This will also establish a consistent approach ensuring that drivers and escorts have the correct training for the roles that they undertake. This will reduce the number of contracts required as drivers and escorts will be better prepared to cope with the passengers that they are transporting. The accepted pressure will allow the pilot initiative to commence and for the level of demand to be assessed.



Occupational Health Telephone Support - Since August 2011 the Occupational health team has piloted a telephone support to encourage employees to keep their occupational health appointment. Given the corporate objective associated with maintaining health and reducing sickness absence this measure would be an important demonstration of the seriousness of the Council's intent to drive down absence and support those who need occupational health referral.



Extended Opportunities for Special Educational Needs Transport Provision - there has been an increase in demand for pupils who are statemented to attend extended opportunity courses that are not on offer at their normal place of study and therefore require transport to enable them to access the course.

40 40 0 Amber-Green Red

3,172 1,091 2,081GRAND TOTAL 13,988 9,639 4,349TOTAL SHARED

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APPENDIX 5

Adult Services 8,063 2,414 5,649Children's Services 3,949 468 3,481City Development 567 537 30City Management 1,557 1,350 207City Services 3,061 2,836 225Communities 2,128 1,880 248Corporate Management 140 140 0Corporate Services 750 701 49Education 2,785 961 1,824Shared Services 3,505 2,892 613Grand Total 26,505 14,179 12,326

200Total 2012/13 Savings 14,379

Transformation Wave 2 Savings

SERVICE AREA SAVINGS SUMMARY 2012/13

Service Area Savings Proposed £000

Savings Accepted £000

Savings Rejected £000

Page 38 of 110

APPENDIX 5

Budget Proposed Accept Reject

No Service Area Accept / Reject Savings Title £000 £000 £000 £000

1 Adult Services - Transformation Accept

Commissioning and Procurement - Savings will come from a number of areas including the Achieving Better Outcomes Project which includes revisiting high cost packages across all services and review existing high cost domiciliary packages. Savings will also be made from the introduction of the Electronic Time Management System.

61,027 200 200 0 Red-Amber Red-Amber Red-Amber


Management Structures - Tier 4 review - FYE 2011/12 - 6.6 fte posts were deleted during 2011/12. This saving represents the full year effect of these deletions in 2012/13. 190 190 0 Green Green Green


Assessment and Care Management - FYE 2011/12 - a skills mix exercise has been undertaken to align skills to the needs of the service while delivering the same capacity. To achieve this, 27 social work posts have been deleted through a combination of vacancies and voluntary severance during 2011/12 while at the same time employing 10 new social work assistants. The full year effect of the saving will be realised in 2012/13.

9,251 665 665 0 Amber-Green Amber-Green Amber-Green

4 Adult Services - Transformation Accept Business Administration - FYE 2011/12 - 6.9 fte posts were deleted in 2011/12. The

full year effect of the saving will be realised in 2012/13. 24 24 0 Green Green Green


Cae Glas - The saving reflects the full year effect of the budgets released as a result of the proposed closure of the Cae Glas Residential Care Home. This is linked to the partnership arrangements that are in place with Hafod Care Association in relation to the transfer of residents (where applicable) to the new Woodcroft Home in Trowbridge. Ongoing consultation has taken place with residents, families, staff and Trade Unions.

824 400 400 0 Red-Amber Amber-Green Red-Amber


Hafod Homes - Fallout of Occupancy Guarantee Payments - This budget formed part of the revised contract arrangements with Hafod Care Association as set out in the report to the Executive Business Meeting on 22nd July 2009. The timeframe for these payments has now ended enabling these budgets to be released.

835 835 835 0 Green Green Green

7 Adult Services Reject

Closure of all Day Centres (Older People/Elderly Mentally Infirm) - closure of centres at Plasmawr Road, Fairwater, Gabalfa Avenue, Llanedeyrn, Iorwerth at Llanedeyrn (Mental Health Services for Older People) , Grand Avenue, Ely, Minehead Road and Llanrumney due to changes in the pattern of service demand.

1,720 1,500 0 1,500 Red Red-Amber Red-Amber


Savings effect of START/Reablement - Savings proposed of £100k achieved through cost avoidance by clients either not requiring services or by no longer requiring long term care. All new cases will go into Reablement in future instead of traditional services. 14,800 100 100 0 Red-Amber Amber-Green Green

9 Adult Services Reject

Changes in Fair Access to Care Services Eligibility Criteria -This proposal would increase the eligibility criteria for the receipt of care services to a level based on Critical which would significantly reduce the level of care available to clients. If accepted, further savings would accrue in future years as reviews take place.

61,027 4,149 0 4,149 Red Red Red

8,063 2,414 5,649

10Children's Services - Transformation

AcceptManagement Structures - Tier 4 review - FYE 2011/12 - 4.3 fte posts were deleted during 2011/12. This saving represents the full year effect of these deletions in 2012/13. 40 40 0 Green Green Green

COUNCIL WIDE SAVINGS SUMMARY 2012/13

Total Adult Services

Residual Risk Achievability EIA

Page 39 of 110

APPENDIX 5





AcceptBusiness Administration - FYE 2011/12 - 5 fte posts were deleted in 2011/12. The full Year effect of the saving will be realised in 2012/13 15 15 0 Green Green Green


RejectBusiness Administration - 2012/13 - This proposal involves the deletion of a number of existing Administration posts and the creation of a smaller number of customer service posts, resulting in a net saving of £65k.

2,318 65 0 65 Red-Amber Red-Amber Amber-Green


Accept

Looked After Children (LAC) Agency Placements -. A collaborative framework has been proposed for agency residential and fostering placements across Wales. The estimated savings are forecast at between 5-10% but this proposal is a more conservative estimate of 2%. The estimated saving could range from £46k for 2% on new placements or £266k if 2% is achieved on both new and existing placements. The proposed saving of £159k is a prudent estimate based on these assumptions.

8,664 159 159 0 Amber-Green Amber-Green Red-Amber


Accept

Increase In House Fostering by 8 full year placements - The All Wales Framework for LAC Placements is aiming to achieve £700 per week as an average cost for external fostering placements. The average in house fostering unit cost is £360 per week, a difference of £340 per week which is £17,680 per annum. This saving will require the Fostering Service to improve its ability to recruit more foster carers. The service is working closely with Corporate Communitications to develop a brand for the service and a robust marketing campaign that will encourage local people to choose to foster for Cardiff. Work will also be undertaken to improve the experience of prospective foster carers who make enquiries to Cardiff and this will include reviewing the screening tools. The assessment process will be reviewed in order to reduce the timesacles from the point of enquiry through to assessment,approval and first placement. Performance will be carefully monitored to identify trends so that corrective action can be undertaken in a timely way if barriers to progress are identified.

2,861 141 141 0 Amber-Green Amber-Green Green

15 Children's Services Reject

Looked After Children Service Manager Post -The LAC Service Manager post for Residential Care (PO4) has been vacant since February 2011 when the post holder took up a new post and the Operational Manager Resources took on direct line management responsibility for the children's homes. However the funding remained and it has been used to offset other temporary expenditure in the service area. The intention was to use the funding on a permanent basis to create additional management capacity in Resources.

44 44 0 44 Amber-Green Amber-Green Red-Amber


Child and Adolescent Mental Health Services (CAMHS) Social Workers - CAMHS social work team of 4 posts (fte 2.42 posts). The CAMHS social worker team is part of a specialist mental health service for young people and their carers provided on a multi disciplinary basis at St David's hospital. The team prioritises referrals from Children's Services but they do not provide a case management function. It is not a statutory duty for Children's Services to provide specialist CAMHS with social workers and children in need who meet the eligibility criteria will continue to be entitled to a CAMHS service regardless of whether Children's Services make a financial contribution to it. The Service Manager post was recently deleted as part of the Tier 4 Review and it is problematic for these posts to remain based in Health without a Children's Services on site line manager. Therefore, the sustainability of these posts within the multi disciplinary CAMHS team is currently being considered. If these posts are taken as a saving it is likely that the post holders will be transferred into case management teams.


Page 40 of 110

APPENDIX 5





Advocacy Commissioned Services - Tros Gynnal provides the advocacy service which includes independent and confidential information, advice, advocacy, representation and support. Children's Services have a statutory duty to provide advocacy services for LAC (including care leavers) and children in need who wish to make a complaint. The contract is over and above statutory requirements but this saving would be high risk. The savings would result in no advocacy services being offered to children who are involved in the child protection process and specialist elements of the service e.g. Unaccompanied Asylum Seeker Children and disabled children will also be at risk. These are groups of children who currently receive a service so it would mean that some children who had previously benefitted from the support of an advocate will no longer be eligible for a service. It would also mean that Children's Services is reducing the level of the service at a time when the Welsh Government are implementing new requirements that partnerships provide 'advocacy for all' children and young people. This saving equates to 1.5 fte Project Workers.

217 44 0 44 Red Red-Amber Red


Support to Child Protection Conferences -Currently this is co-ordinated by an Administration Assistant (Scale 4) who maintains a booking database and manages 5.6 fte Child Protection Conference Administrators (Scale 3/4). The Administration Assistant is responsible for the deployment of the Child Protection Conference Administrators to ensure that all conferences are supported. The administrators support the conference Chair and take minutes of all initial and review conferences. The minutes can be extensive and complex and under this proposal would be taken by the Chairs.

148 148 0 148 Red Red Red


Local Safeguarding Children's Board (LSCB) Contribution -This funding is part of the contribution made by Children's Services to support LSCB work. It is currently being used to provide business support to LSCB.

10 10 0 10 Red Amber-Green Red-Amber


Llamau Commissioned Services for Provision of Housing for Care Leavers - Children's Services has 4 contracts with the same external organisation for the provision of accommodation and support for Care Leavers. Children's Services currently pay the rents for care leavers who access the accommodation and Supporting People funding and meets the costs of the support element of the provision. The contract price covers the deficit in the operational costs that exists after the support costs and the rents have been paid. However it is very unusual for commissioners to pay an additional sum on top of support costs and rent and there are likely to be efficiencies that can be made in the contracts which would enable Children's Services to make a saving on the contract price. Housing Services have confirmed Care Leavers are a priority group. There will be an opportunity to do this in 2012/13 as the contracts expire at the end of March 2012. The savings will be as follows: Women's Services £9k; Tri Deg £17k; Network £24k; and Llandaff Road £13k.



Referral Order Case Managers x 1.5 fte - The purpose of these posts is to supervise children who have been sentenced by the Courts to a Referral Order. Losing these posts will reduce our ability to fulfill our statutory obligations to the Courts and the Criminal Justice System.

30 30 0 30 Red Red Red

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APPENDIX 5





Section 17 Budget - Reduction in the budget for discretionary spend against duties under section 17 of the Children's Act 1989. This will raise the threshold where Children's Services are able to support families at a time when families are already under significant financial pressures. It is a critical issue relating to child protection.

182 40 0 40 Red Amber-Green Red


Youth Offending Services (YOS) - Team Manager x 1 -The YOS currently benefits from the services of 4 Team Managers who manage and supervise some 70 staff, oversee their case management activities and carry out a range of other duties that include liaison with partner agencies, overseeing prevention projects and reporting to a number of funding agencies. Deletion of this post will reduce the management capacity of the YOS and place additional responsibilities on remaining managers.



ABCD Commissioned Services - This is a service offered to black and ethnic minority families who have children with disabilities. They offer support through a translation service and individual support to families to assist them in their understanding of the services that are available for their children and families.



SNAP Commissioned Services - This contract is for parents who have children statemented for special education to access advice when their children's education is not felt to be meeting their needs. It offers parental advice and the opportunity to seek a legal opinion to challenge their child's assessment.



South Riverside Commissioned Services - This community centre offers the opportunity for ethnic minority families to meet and improve their social contacts and education while their children are being cared for.



Women's Aid Commissioned Services -Children's Services has a service level agreement with Women's Aid that provides child development and play workers. Children are able to access a range of appropriate, child centred support and resources to address their needs including leisure, play, safety and learning. They also employ a qualified specialist worker offering expertise in the field of domestic violence to work in an integrated multi-agency capacity with a proportion of their time being based in Intake and Assessment. The social worker undertakes specific work in preparation for Multi-Agency Risk Assessment Conference (MARAC) meetings and this releases capacity in Intake &Assessment as this work would otherwise need to be undertaken by Intake & Assessment social workers and managers. Domestic abuse has impacted on a significant number of families who are referred to Intake and Assessment and the Service Level Agreement assists Children's Services to undertake their core business.

63 63 0 63 Red Red Red-Amber


Support for children in families without recourse to public funds - The proposal is that funding allocated to support children whose families have no recourse to public funds be reduced by £50k to reflect reduced service need.



Social Work Teams - This saving would be achieved through offering voluntary severance to a range of social work teams from all areas of Children's Services including Business Support who provide support for the identified teams. Children's Services would be unable to meet the full range of their statutory responsibilities and decisions would need to be made to which would be a priority.

11,072 2,850 0 2,850 Red Red Red

3,949 468 3,481Total Children's Services

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APPENDIX 5




30City Development - Transformation

AcceptCommissioning and Procurement - Procurement savings across the service area but primarily in the area of consultancy. 1,357 130 130 0 Green Amber-Green Green




AcceptTransport & Traffic - FYE 2011/12 - The full year effect of 2011/12 service redesign savings. Transportation have identied an additional income stream by charging for Road Safety Audits.



AcceptBusiness Administration - 2012/13 - This proposal will result in the deletion of 1 post.


34 City Development Accept Sustainability Officer - Vacant Post - This involves the deletion of a vacant post

within Strategic Planning. 1,900 31 31 0 Green Green Green

35 City Development Reject Enforcement Officer - Vacant Post - This involves the deletion of a vacant post within

Development Management 1,490 22 0 22 Red-Amber Green Green

36 City Development Reject

Increase Planning Fee Income Target - Planning Fee Income target increased by £8k. Projections for the level of fee income have reduced in recent monitoring reports in 2011/12 which makes this saving no longer feasible.

1,475 8 0 8 Green Amber-Green Green

37 City Development Accept Planning Officer - Team Leader - 50% post (Strategic Planning) -There is an

opportunity to reduce the hours of an officer in Strategic Planning. 1,490 19 19 0 Green Green Green

38 City Development Accept Charging for preparation of events - Transportation have identified an additional

income stream by charging staff time for the preparation of events. 0 10 10 0 Green Amber-Green Green

39 City Development Accept Charging for Section 278 works - Transportation have identified an additional income

stream by re-charging for Section 278 works. 0 31 31 0 Green Amber-Green Green


Property Design and Development (PDD) - Printing and Stationery - Reduction in the equipment and material budget in Projects Design and Development based on current expenditure spend.



Budget Saving at E-Commerce Innovation Centre - The current budget of £20k is committed to paying to support a project until the end of this financial year in the E-Commerce Innovation Centre. The project is expected to be completed by the end of 2011/12. Therefore, the budget can be reduced.


567 537 30

42City Management - Transformation

Accept

Commissioning and Procurement - savings arising from a review of category management including agency works, building maintenance & materials, highways maintenance & materials, advertising, print & design, catering, parks & grounds maintenance services & materials.



AcceptManagement Structures - Tier 3 review - FYE 2011/12 - 2 fte posts were deleted during 2011/12. This saving represents the full year effect of these deletions in 2012/13. 68 68 0 Green Green Green




AcceptParks Restructure - This represents the additional saving achieved as part of the Parks restructure in 2011/12. 30 30 30 0 Green Green Green

Total City Development

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AcceptBusiness Administration - 2012/13 - This proposal will result in the deletion of 2 posts.

660 44 44 0 Amber-Green Amber-Green Amber-Green


Accept

Transport and Traffic Management - It is proposed to introduce Pay & Display parking measures into Mount Stuart Square, West Bute Street, Bute Street, Trade Street and Canal Parade.Current limited waiting restrictions are difficult to enforce whereas Pay & Display will facilitate improved enforcement results in better turnover of spaces for the benefit of local businesses. Proposals for this area will include a period of free parking to facilitate access to shops and other businesses. The additional income achieved in relation to Civil Parking Enforcement will provide further scope to support eligible expenditure in relation to Traffic and Transportation costs.



Accept

Key Holder Status - bowls clubs (Parks and Sport) - A reduction in the number of agency staff appointed to specific sites where Bowls Clubs can take on key-holder arrangements and develop as part of a sporting hub. Initial sites for this arrangement include Victoria Park, Splott Park, Llywnfedw Gardens, Trelai Park and St Mellons. In previous budget rounds the approach of passing key holder status on to clubs has been approved and has proved to be successful. This proposal represents a wider roll out of that approach.



Accept

Sport Cardiff / Outdoor Leisure Management Re-design (Parks & Sport) - A staffing restructure and new alignment to Neighbourhood Management areas will bring about a 5% saving on staffing costs by changing the role of games attendants and creating a new staff structure utilising existing grant funding from Sport Wales.



Accept

Commercial Development Restructure (Parks & Sport) - As part of service re-design and under Tier 4 proposals the post of Commercial Development Manager has been established with the post holder taking responsibility for the management of Pontcanna Caravan Site and Sophia Gardens Car Park. The establishment of this post will eliminate the need for the Scale 5/6 Facilities Support Officer post currently vacant. It is the service's intention to take a more commercial approach to key elements of service provision, and utlise these to generate sustainable revenue streams. For example, at the Caravan Site, actions will be taken to increase occupancy rates, reduce the number of bookings cancelled without charge, etc. In addition measures are being taken to reduce costs (eg reduce utilities usage).



Accept

Mechanisation Improvements (Parks & Sport) - As part of a review of operations, mechanisation of the nursery provision has been trialled / demonstrated and it is proposed for use within the Council's plant production nursery. This is a transplanter which will increase productivity and reduce labour resource in terms of handling plant material and facilitates the deletion of one vacant post.


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Reject

Reduction in Floral Provision (Parks & Sport) - Under this proposal there would be a reduction in floral provision through the reduction of displays situated in the Civic and City Centre (approximately 50 units) which are sourced externally, such as pyramid planters / floral cubes with the visual impact mitigated by use of displays produced by the Council's Nursery service. There would also be a reduction of static bedding displays throughout parks and green spaces (approximately 20%).



Partially Accept

Phase 1 Parks Management Restructure to Accommodate Re-Design - The proposals are to review the number of venues, whilst making quality improvements, in line with the proposals to provide sporting hubs. A review and consultation on the frequency of maintenance regimes in parks facilities across the Council will be undertaken to identify opportunities for savings. In order to achieve the savings a restructure at an operational level would be implemented with a reduction in the number of fte posts. At the accepted level operational efficiencies should result in no adverse impact on users.

1,416 145 50 95 Green Green Green


Partially Accept

Fees & Charges -There is a variation in the actual increase of fees and charges across the Parks & Sport Service which are detailed in the appendix to the budget report relating to Fees and Charges.



New Theatre Stage Door - The proposal involves the loss of one full time position through voluntary severance and centres around the reduction in hours of stage door cover for the building. This can be achieved with no loss of opening time to the public by redistributing part of the workload, covering the balance with additional hours on an existing, similar, part time post and re-evaluating the emergency procedures applicable during performance times (with no increase in risk).



New Theatre House Management -This proposal involves the loss of an SO1 graded post, however the operation of the theatre would be compromised if further measures were not taken. It is proposed to create a new Duty Manager part time (18.5 hours) post at Sc 5 to cover the show time elements of the deleted post with the other responsibilities being absorbed by the two other house managers.



Arts Development - Arts Grants reduction- This represents a cut of 10% in the arts grants budgets after ring fencing Artes Mundi, the Iris Prize and Academi, BBC Cardiff Singer of the World and all international events.

553 31 0 31 Red-Amber Green Red-Amber


Flatholm Island - Saving available from 3 elements :- 1. Flatholm manager currently vacant due to 2 year secondment. Reduce grade of post through reallocation of duties to other members of staff resulting in PO1 rather than PO3 cost - saving £7k. 2. Increased and new fees and charges £4k. 3.Joint booking arrangements for Cardiff Harbour Authority facilities to reduce booking and administration cost by £8k. Total saving £19k



Transport and Traffic Management - Realignment of Enforcement Activity - Following a review, it has been recognised that costs incurred outweigh the benefits being derived. Two postholders have requested Voluntary Severance and these will be agreed.

2,177 41 41 0 Green Green Amber-Green

1,557 1,350 207

60 City Services - Transformation Accept Commissioning and Procurement - 2012/13 - Savings primarily arising from the

review and implementation of the Highways and Waste materials category plan. 7,913 224 224 0 Red-Amber Red-Amber Green

Total City Management

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61 City Services - Transformation Accept


62 City Services - Transformation Accept Business Administration - FYE 2011/12 - 1 Post deleted in 2011/12. Full Year effect

in 2012/13. 3 3 0 Green Green Green


Waste Management - New Schedules - FYE 2011/12 -The identified saving of £376k is the additional saving to be made in 2012/13, on top of the half year saving being achieved in 2011/12 of £426K, associated with the waste collection efficiency savings introduced in September 2011 (i.e. the total annual saving associated with waste collection efficiency changes of £802K)



Waste Management - Delivery Support Service Efficiencies - FYE 2011/12 - As part of the 2011/12 Waste Management Service Redesign Programme, efficiency improvements to the stores arrangements, delivery of bins, bags, repairs and consumables across the city are part of Service Redesign. The efficiency improvements are being derived through restructuring, rescheduling the teams, back office efficiency and use of route optimisation software to redesign the delivery routes on a daily basis to speed up the customer response. Restructuring discussions are in progress with Trade Unions.

6,190 30 30 0 Green Amber-Green Green


Waste - Consumable Store Management - FYE 2011/12 -It is intended to introduce a computerised stores management system which will provide greater control on the ordering and issue of consumables resulting in savings being achieved. There have been delays in the implementation of this project but it is currently expected that it will be fully implemented before the 2012/13 period.


66 City Services - Transformation Reject

Vehicle Use at HWRC - FYE 2011/12 - It is not permitted for commercial waste to be disposed at Household Waste Disposal Centres (HWRCs). However, as a result of the increasing cost to dispose waste to landfill, some commercial organisations have sought to dispose their waste, 'disguised' as domestic waste, at HWRCs. Controlling the type of vehicles that can use the HWRCs will help reduce the amount of commercial waste disposed at the HWRCs. As a result, the amount of waste disposed to landfill will be reduced. The saving is derived from the associated reduction in treatment costs and landfill tax payable.



Commercial Collection Redesign - FYE 2011/12 - This will achieve efficiency savings by redesigning the waste collection rounds using route optimisation software, as undertaken with the domestic waste collections. The redesign of the routes will allow the commercial waste collection resource requirements to be reduced, this also needs to be balanced with the potential growth of the service.

1,395 54 54 0 Red-Amber Amber-Green Green


Highways Redesign - The Service Redesign Project for Highways has recently been established. The project is moving in two phases, phase one focus' on efficiency and productivity. The savings identified within the Target Operating Model are to be achieved in phase two with £250k in 2012/13 achievable from September 2012 and the balance being achieved in 2013/14. The Phase 2 redesign will define the revised delivery model of: Re-design of Highway Repairs - carriageway, Delivery Model - Footway repairs, Delivery Model - Footway reconstruction, Design & Technology - use of surface dressing to extend life of highway. Any staff affected will be fully consulted prior to September 2012 and normal voluntary processes and redeployment will apply.

7,584 250 250 0 Red-Amber Red-Amber Green

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Efficiency Improvements to MRF Operations - At the current time, the Materials Recycling Facility (MRF) operates on the basis of 12 hour shifts, 7 days per week, but is not allowing sufficiently for demand peaks nor an efficient maintenance regime. Demand is increasing for the MRF. There is a need to improve the efficiency of the MRF and further discussions will be held with staff and Trade unions on how this can be achieved.

978 120 95 25 Amber-Green Red-Amber Green


Additional MRF income - In 2011/12 recycling product markets have strengthened and provided a preferential income position achieving over and above the income target. It is currently anticipated, based on market prices and stability that this benefit will continue into 2012/13. There are risks associated with market fluctuations that will be closely monitored and managed, however the markets are not always controllable and can produce significant dips in income performance.



Efficiency Improvements on Waste Disposal Activities - As a result of a favourable shift in the waste disposal market prices, there is an opportunity for the Council to secure more competitive rates for the 'external' disposal of its residual waste. This has been achieved through the renegotiation of contracts for an 18 month period. This contract is also the current procurement vehicle for post sorting of the HWRC materials to meet targets and reduce fiscal risks.

8,156 315 315 0 Amber-Green Green Green

72 City Services Reject

Charge for Bulky Waste Collections - Many local authorities make a charge for the collection of bulky goods. It is proposed that a charge (£15 per visit) should be introduced to try to recover the Council's costs in delivering this service and minimise waste managed. However, it is likely that the introduction of a charge will reduce demand and also the number of calls to C2C. Therefore, a 50% reduction in demand has been assumed in calculating the potential income. There may also be a short term displacement of costs for additional fly-tipping.



Reduction in Residual Waste Disposed to Landfill - In order to achieve the landfill targets set by the Welsh Government, the amount of municipal waste being disposed to landfill is being reduced each year. Cardiff Council's Municipal Waste Strategy 2011-16 identifies how the targets set for Cardiff will be met over the period 2011-16. The cost saving assumes that the landfill target for 2012/13 is met and exceeded at 58%. However this reduction has also contributed to the current procurement vehicle for Post Sorting of the HRWC materials to meet targets and reduce fiscal risks.

5,129 1,292 1,292 0 Red-Amber Red-Amber Green

3,061 2,836 225

74 Communities - Transformation Accept

Customer & Business Knowledge - FYE 2011/12 - work to identify this saving is being undertaken with the Business Intelligence Project under the Citizen Focus Project.

446 20 20 0 Amber-Green Red-Amber Green



76 Communities - Transformation Accept Business Administration - FYE 2011/12 - 6 Posts deleted in 2011/12. Full Year effect

in 2012/13. 51 51 0 Green Green Green


Business Administration - 2012/13 - This target will be achieved as part of a service redesign project. Detailed work on service redesign has commenced. In addition, a project group is being co-ordinated to review administration across the Communities Directorate.

3,139 237 237 0 Red-Amber Amber-Green Amber-Green

Total City Services

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Management Structures - Tier 3 review - FYE 2011/12 - 2 fte posts were deleted during 2011/12. This saving represents the full year effect of this deletion in 2012/13. 42 42 0 Green Green Green

79 Communities - Transformation

Partially Accept

Neighbourhood Learning - Neighbourhood Learning is in the scope of the Citizen Focus Programme which is looking at the delivery of services within neighbourhoods. The overall objectives of the Neighbourhood Learning Project is to ensure that new ways of working and efficiencies are identified. This will result in a direct reduction in management & administration posts without impacting on frontline services. The accepted level of saving reflects the position reached after consultation with affected staff and Trade Unions.

2,863 400 367 33 Amber-Green Green Red-Amber


Benefits Service - Service redesign -It is anticipated this Wave 2 service redesign of the Benefits Service can release a total saving of £157k, however grant funding will be decreasing from April by £79k and so the saving available is £78k. The saving will be achieved by a review of support provided to benefit staff, with more generic working across the housing and benefits sections. This could release 2 staff and allow some realignment of funding with the HRA .A review of customer service could allow the deletion of 9 specialist posts and their replacement by 5 lower graded posts, with functions transferring to the generic housing and benefit enquiry staff. Within Benefit Assessment greater specialism will be introduced allowing the replacement of some scale 3/6 posts with lower graded posts.

3,598 78 78 0 Green Amber-Green Amber-Green


Disabled Facilities Service Business Administration - The service currently has 5 scale 4 administration officers who support technical officers delivering grants. The budgets for the delivery of Targeted Elderly and Renewal grants has seen substantial capital reduction of 50% over the last year, with an estimated further reduction of 21% in 2012/13. This will further reduce the need for administration support.

100 27 27 0 Green Green Red-Amber


Community Directorate Service Redesign - A significant proportion of the Community Directorate services will form part of the Wave 2 Service Redesign Programme. Work on details of Service Resdesign has commenced and three workshops have taken place. The Housing Service Redesign 'As Is' report will be available by end of January 2012, with the Target Operating Model completed in February. Project Executives and Programme Boards are being established. The 'Regulatory & Supporting Services' Redesign is currently being looked at with a 'As If' Report being available by March 2012.



OM2 Trading Standards and Licensing - This proposal involves deleting the vacant Operational Manager Post for Trading Standards and Licensing. The post was not filled at the Tier 3 reorganisation and an external advert failed to find a suitable candidate. The duties are currently being performed by the Head of Service, but this is not sustainable and will require a re-alignment of existing resources.

68 68 68 0 Amber-Green Green Green


Neighbourhood Learning - Contribution to Administration Support - Discontinue shared administartion arrangement with Education (re Friary/DART), following Neighbourhood Learning's exit from the building, with effect from 1st April 2012 - approx save £13k in the form of a contribution towards a post managed by Education. Discontinue additional caretaker post at Severn Road, ideally via Voluntary Severance, saving approx £5k.

400 18 18 0 Red-Amber Amber-Green Green

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Adjustment to the opening hours of Leisure Facilities (Mon - Fri) - Due to historic low usage of the facilities at this time of the evening, this proposal recommends closing Leisure Facilities at 10pm to the public (10.30pm for staff). This means that the last court hire would be from 8.30pm - 9.30pm giving customers 30 minutes to shower and change before leaving the building. Staff would be allowed 30 minutes to clean the facility after the public had left the building. Some Leisure Facilities have lounge bars that are currently open until 11pm to the public, 11.30pm to staff. This proposal would bring forward the public closing hours to 10pm to the public and 10.30pm for staff. In respect of Maindy Centre this applies for Mon-Thurs only.The impact of this proposal on the income taken by the lounge bars in leisure centres is negligible.


86 Communities Reject

Christmas to New Year Closure of Leisure Facilities (except 1)- This proposal recommends the closure of all but one Leisure facility from Christmas to January 2nd. This is by far the quietest time of the year for leisure facilities and attendance levels reduce significantly. Staff would be required to use their statutory days to cover this period and use annual leave to cover any shortfall. It is recommended that one facility remains open over this period on a rota basis to improve access for Active Card members and casual users. The closure of the STAR Centre over the Christmas period may mean that the integrated Splott Library will have to close at the same time .

4,739 35 0 35 Green Green Red-Amber


Pentwyn Leisure Centre (PLC) - Restricted use of Beach End of Pool - This facility is not used significantly through the day so this proposal recommends restricting the use of the beach end of the pool at PLC between 9am and 12noon Monday to Friday. This will concentrate morning swimming to the 20m x 12m section of the pool. Reducing the area of the pool open to the public allows for a reduction in lifeguard cover. The pool will be fully open during all school holidays. Provision will be made for disabled/wheelchair users to access the pool.

732 8 8 0 Green Green Amber-Green


Western Leisure Centre - Amended Opening Hours to Learner and Baby Pool - This facility is used at variable levels throughout the day so this proposal seeks to amend the opening hours of the learner and baby pools to enable a reduction in staffing levels. The proposal is to close these pools at 6.30pm Monday to Friday, at 12.30pm on Saturdays and at 1pm on Sundays. It is anticipated that swimming lessons and parent and tot sessions will be accommodated within the revised opening hours.



Reduced Opening Hours at Maes y Coed Road Community Hall - This proposal recommends reducing the opening hours at Maes y Coed Road Community Hall. The Community Hall currently opens to the public at 9am but attendance levels throughout the morning are low. This proposal would see it opening to the public at 1pm. The small amount of daytime provision that currently takes place could be re-directed to Llanishen Leisure Centre less than half a mile away.



Local Training & Enterprise - Various Budget Headings - The £34k saving is taken from the following areas of the budget; - jobseeker training costs (£12k saving), Enterprise Centre cleaning (£16k), Grangetown Enterprise Centre Software purchase (£4k), Operational Manager conference expenses (£2k). The savings are based on historic expenditure trends.

1,000 34 34 0 Amber-Green Green Red

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Closure of Leisure Facilities on Bank Holiday Tuesdays and Good Friday - The majority of leisure facilities have been closed for a number of years on Bank Holiday Mondays as attendance and income levels were particularly low and expenditure, through staff costs, disproportionately high. For Bank Holiday Mondays only one facility is left open, usually Llanishen Leisure Centre, to satisfy the demands of Active Card holders and casual users. This proposal extends to Eastern Leisure Centre, Fairwater Leisure Centre, Western Leisure Centre , Pentwyn Leisure Centre, Maindy Centre, STAR and Channel View Centre.

4,739 15 0 15 Red-Amber Amber-Green Red-Amber


Gypsy & travellers income from rent increase -This is achieved by the third year of a planned rent increase to move the sites away from dependency on the General Fund. This saving does not reduce service and the rent rise was discussed with the residents two years ago.


93 Communities Reject Third Sector Advice Grants - A reduction in the Advice Grants will be achieved by evaluating all current schemes. 433 13 0 13 Red-Amber Red-Amber Red

94 Communities - Transformation Reject

Deletion of Community Safety CCTV team - The CCTV team consists of one supervisor and 3 operators all working from the CCTV joint facility at County Hall. These operators work to a shift pattern that covers the city 24/7 and monitors exclusively crime and disorder. In addition, the team monitor the redeployable units that are placed according to hotspot evidence linked to Anti -social behaviour / crime and which are used to gain evidence for the police / Anti-social behaviour team to take action against perpetrators. These tasks are not carried out by any other partner within the facility. Therefore, it is expected that this proposal would cause some reputational, partner or community concern. However, it is not a statutory service and there is no legal imperative for the Council to provide a CCTV service. There is an option that the Telematics team be requested to carry out some of the functions of the Community Safety team, but this would be on a reduced service due to workloads and priorities.

122 122 0 122 Red-Amber Amber-Green Red


Partnership Project Support - The proposal is a reduction in partnership project support which facilitates partnership working in relation to the work of the Local Service Board/Integrated Partnership Board. This work will be picked up by other members of the Partnerships & Citizen Focus Team through a more efficient re-alignment of duties between members of the Local Service Board and Integrated Partnership Board while maintaining the overall commitment to partnership working.

433 30 30 0 Green Amber-Green Amber-Green

96 Communities AcceptPartnership & Citizen Focus Grant Reduction - This reflects small savings in supporting partnership meetings and a reduction in funding need following the development of Results Based Accountability.


97 Communities Accept Resources Manager PO4 - Deletion of a vacant post which is part HRA funded. The £16k proposal represents the General Fund element of the budget. 16 16 16 0 Green Green Green


Reduction in Grants - The proposed saving represents a pro-rata reduction in the grant budgets to Voluntary Community Service (existing grant of £25k), Voluntary Action Cardiff (existing grant of £119k), Diverse Cymru (existing grant of £35k), Gypsy Traveller project (£38k), Race Equality First (£170k), Council's Equality Development Grants (existing budget of £10k) and Council's Community Development Grants (£6k).

403 15 0 15 Red-Amber Red-Amber Red

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Relocation of Advice Services - This is a proposal to close the Consumer Advice service at Bridge Street and relocate the officers to City Hall. While the Council will continue to provide second tier consumer advice, it is possible to release members of the existing administration and reception team and use the main reception at City Hall to deal with personal callers. The number of personal callers to the Bridge Street office has dropped in recent years and it is believed that the City Hall reception would be able to deal with the increased numbers without too much difficulty. In the longer term, this proposal may also be impacted upon by the development of the Citizen Hubs.

25 25 25 0 Green Amber-Green Green


Environmental Health - Deletion of 0.5 PO1 Post - The proposal involves the deletion of a vacant 0.5 fte Environmental Health Officer post in the Pollution Control Noise & Air Team. The total gross saving associated with the deletion of the post is £19k but it is proposed that £4k is retained to cover staff realignment costs that will result from the proposal. The team comprises an out of hours reactive service which operates Thursday to Sunday at peak periods. The deletion of the post will reduce capability to respond to complaints, particularly at peak periods in the summer months. There is a potential for disruption to the out of hours service as a result of lack of cover although this may be partially mitigated by using part of the saving to increase overtime capability to cover emergencies.

19 15 0 15 Amber-Green Green Amber-Green

2,128 1,880 248


Corporate Initiatives - This proposal is to reduce the Corporate Initiatives budget which would result in fewer projects being supported. The Corporate Initiative Reserve could be used to provide flexibility if necessary.



Corporate Grants - The Corporate grants budget supports a number of grants including two grant schemes (Community Facilities and Innovations) however neither of these schemes are committed beyond 2011/12. Grant request and monitoring forms have been circulated so targeted savings can be recommended.

398 31 31 0 Green Green Red-Amber

103 Corporate Management Accept Corporate Management Overhead Costs - A review of budget heads has indicated

savings based on historic trends of £50k. 549 50 50 0 Green Green Green

140 140 0

104Corporate Services - Transformation

Accept

Commissioning & Procurement - Savings will be achieved through a review of commissioning and procurement arrangements including areas such as Commensura, Legal Online and other external spend. A saving will also be achieved through a cost sharing arrangement with the HRA which will benefit from the commissioning and procurement reviews being undertaken.





AcceptBusiness Administration - FYE 2011/12 - 1 Post deleted in 2011/12. Full Year effect in 2012/13. 1 1 0 Green Green Green


AcceptBusiness Administration - 2012/13 - Proposals within Corporate Services will be further developed as the roll-out of the Council wide business administration processes are completed.


Total Communities

Total Corporate Management

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Accept

Information & Performance Management - FYE 2011/12 - This is the full year effect of implementing the new Information and Performance management arrangements across the Council. Savings consist of the full year impact of 3 posts that have been deleted & the implementation of a new structure from April 2012.

150 150 0 Green Green Green


Staffing Reductions across finance divisions - 1) Internal Audit (£5k) - reduction in hours - the proposal is to reduce an auditor's hours from 37 to 30 per week. 2) A £1k reduction in Agency Staff budget within Exchequer and Development. 3) £4k saving as a result of a reduction in working hours for Technical Accountant from 37 to 34 per week with effect from September 2011. The reduction in working hours can be accommodated within the section.



Staffing Reductions in Service Accountancy - £20k saving as a result of the deletion of a vacant post within Service Accountancy.This will require a realignment of workload and duties which would heighten risk in the medium-term.



Income Streams - new / increased -This saving is for a number of proposals to increase income across the service area. 1) £15k - The Internal Audit section currently earns income from auditing grants for other service areas within the Council and from providing an audit service to joint committees. It is planned to increase this income over the level in the budget for 2011/12. Although the level of income is dependant on the number of grants available to the Council. 2) £20k additional income through NNDR admin grant. The basis of the grant is determined by Welsh Government. This funding will be available as long as the formula for the grant does not change. 3) £11k additional income through revision and realignment of the insurance recharge to the HRA. 4) £8k surplus service charge income from workshops 5) £17k - Project Accountancy Group Accountant salary to be part funded from the procurement budget identified in respect of the Organic Waste Project. Resources within the section will need to be monitored.


112 Corporate Services Accept General savings across the service area - to be achieved through savings on various

budget heads across Corporate Services including stationery and postage. 76 24 24 0 Green Green Green


Scrutiny Research Assistant post - The Council's Scrutiny Service contains a small Research function. They carry out a range of qualitative and quantitative research and analysis to enable the Council's five Scrutiny Committees to carry out their work. The Scrutiny Research Assistant specifically carries out smaller pieces of research and works to support Task and Finish Inquiries. The loss of this post will reduce the effectiveness of the Scrutiny Team at a time when Member expectations are rising, and the implications of the Local Government Measure (Wales) 2011 will require greater focus by the Council on scrutinising local public services in the health and criminal justice sector.



Reduced hours of a Health and Safety Adviser post - This proposal would see a Health and Safety Adviser's post reduced from 1 fte to 0.5 fte to reflect the current working arrangements of the post holder.



Reduce number of newspapers for Councillors - this saving was discussed at the Whips meetings in the autumn and all parties have agreed to reduce the costs to contribute to the 2012/13 budget savings.



Non - Executive Member Development / attendance at conferences - reduction in the budget allocation for Non-Executive Member development and attendance at conferences on behalf of the Council.


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Executive Member development /attendance at conferences - reduction in the budget allocation for Executive Member development and attendance at conferences on behalf of the Council.



Committee and Member Services - A minor restructuring following the departure of the Committee and Member Services manager under voluntary severance has enabled this saving to be achieved.

39 26 26 0 Amber-Green Amber-Green Green

119 Corporate Services Accept Legal Library resources - there is a risk that the current quality legal advice may not

be delivered with changes in legislation /case law. 80 28 28 0 Amber-Green Amber-Green Amber-Green

120 Corporate Services Accept Legal practicing certificates/registrations - the cost of practicing certificates has

reduced. 34 2 2 0 Green Green Green

750 701 49

121 Education - Transformation Accept

Commissioning & Procurement - The service area will achieve this transformational change target by reducing the procurement of external services including the hire of premises for conferencing and the delivery of Continuing Professional Development activity.


122 Education - Transformation Accept

Management Structures - Tier 4 review - FYE 2011/12 - 3 fte posts were deleted during 2011/12. This saving represents the full year effect of these deletions in 2012/13. 97 97 0 Amber-Green Amber-Green Green

123 Education - Transformation Accept Business Administration - FYE 2011/12 - 4.6 Posts deleted in 2011/12. Full Year

effect in 2012/13. 24 24 0 Green Green Green

124 Education - Transformation Accept Business Administration - 2012/13 - The Service has identified 12 posts across its

sections which can be deleted to achieve the given level of savings. 3,114 237 237 0 Green Green Amber-Green

125 Education Reject

Music Service - To enable the Music Service to sustain a reduction of £50k from the revenue budget and protect the Music Development Fund to the current level of £172k, music tuition fees would be increased by 6% from the current rate £29.95 to £31.75 per hour with effect from 01.09.2012 generating an additional income of £69k.



Pupil Support Service General -This area of the service consists of a number of separate teams working to support schools in the area of behaviour and achievement and to address the issues of emotional well being within the school community. The Behaviour Support Team which aims to enable pupils with behavioural, emotional and social difficulties to engage with the school curriculum and achieve their full potential by providing specialist services. The Sensory and Communication Team work with pupils in mainstream schools who have a statement, attend Special Schools and Specialist Resource Base and pupils at Schools Action Plus. The teams are able to provide support through the medium of Welsh and develop and implement training programmes for schools. Savings within this area can only be achieved by reducing the overall staffing compliment, however this would significantly reduce the teams ability to provide the range of statutory services to schools. Staffing would have to be reduced by 7.5 fte posts from these teams.

6,081 400 0 400 Red Red Red

127 Education Accept

Increased income through the hire of meeting facilities - The service area will seek to increase income generation from the hire of the Monmouth Suite of meeting rooms at The Conference Centre (Eastmoors Rd) promoting enhanced use of premises by internal and external users.


Total Corporate Services

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Childcare - contracted out services - The proposal is to cease the external business support for 5 national childcare umbrella organisations and to bring this service in house. This will save £30k which represents the 5 contract management fees for the delivery of the combined services. The proposal to restructure creating a team of generic Development Officers which will enable development of unmet demand for childcare places not serviced by the above provider types. Currently these contracts are procured annually and are in addition to core funding the organisations receive from Welsh Government, Welsh Language Board and other funding sources including membership fees charged by the organisations which support a range of membership benefits. The contracted services are to support the development of new childcare places, sustaining existing quality childcare provision and supporting improving quality of childcare settings. These services are annually reviewed and targets set in response to the annual Childcare Sufficiency Assessment (CSA).

905 30 0 30 Red Red-Amber Red-Amber


Childcare - grant income - The proposal is to delete a vacant Administration Finance Officer post. The tasks handled by this post will be redistributed to other members of the team and the appointment of Grant Funded Regional Lead Officer posts should introduce further capacity into the team to handle the workload.



School Improvement -The Local Authority has agreed to be part of the Central South Education Consortium, which from September 2012 will form a Joint Education Service for School Improvement functions and also a traded arm to offer training support to schools. Within the new consortium arrangements the potential income stream for the traded arm will be the School Effectiveness Grant that schools will be delegeted and choose to use to purchase training and support. The proposal is to reduce the school improvement budget by £384k following the formation of the Consortium, however there are significant risks associated with potential severance costs which may impact on the achievability of this proposal.

1,135 384 0 384 Red Red Red


Welsh Language Board - The Local Authority currently receives a Welsh Language Board Grant of £190k for the financial year 2011-2012. The grant is used for two prescribed purposes the first being Athrawon Bro - Welsh Second Language £163k and Athro Bro - Welsh First Language £27k, the grant is used to promote various aspects of Welsh education. To secure the grant the authority is required to contribute 25% of the cost which is for the Authority for the current financial year £63k The balance on this budget line is used to sustain 6 fte Advisory Welsh Teachers. To enable the service to achieve the level of savings indicated 1fte Advisory Teacher post would be deleted. The acceptance of this proposal would reduce the resources available to support the provision of Welsh language advisory service against a background of growing demand for Welsh education in the city.

178 50 0 50 Green Red-Amber Red


Traveller's Education - The Local Authority currently receives a Welsh Government grant of £175k for the provision of Education of Gypsy and Traveller Children for the financial year 2011-2012. This figure represents 75% of the total programme costs and the remaining 25% is met by the Local Authority. The service currently allocates a gross revenue expenditure budget of £319k, which includes the 75% grant of £175k. The savings proposal reflects a re-alignment of staffing resources as part of an internal re-structure whereby the Traveller Education Team has merged with the existing Minority Ethnic Achievement Grant (MEAG) team to enable efficiency savings within support services.

122 50 50 0 Green Green Red

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133 Education Partially Accept

Management and Support - To enable the service to achieve the saving target of £459k staff savings of 10.6 fte's would need to be made. Whilst a number of these posts are vacant, these staff cuts would impact on the ability of the Council to fully respond to the Post Inspection Action Plan and carry out the ongoing work associated with collaboration with other local councils on education services. The accepted savings proposal will remove the following 6 fte's: 1 fte Senior Achievement Leader (Vacant), 2 fte Achievement Leaders (voluntary severance), 1 fte Research & Information Officer (Vacant), 1 fte Officer post Mynachdy and 1fte education Liason Officer (Vacant). The accepted level of savings can be managed without significant detriment to the service or the Post Inspection Action Plan and would reduce the residual level of risk and achievability to Red-Amber and Amber-Green respectively.

5,897 459 300 159 Red Red-Amber Amber-Green


Youth Service - Management and Administration - Savings would be generated through a significant realignment of management to reflect neighbourhood areas combining North & West, South East & East, City and South & South West Neighbourhood Management. Three youth work delivery teams will operate across Cardiff with an emphasis on need / outcome focused delivery. Teams will be led by an area manager and supported by a locality clerical officer. Saving 1 fte Service Manager Youth Development Officer.

3,483 33 33 0 Red-Amber Amber-Green Red-Amber


Youth Service - Workforce Part Time Staff - the service currently has a part time workforce of 456 posts with workers delivering between 2 hours to 30 hours a week. Restructuring the part time work force through the development of more substantive part time posts across the service would provide a more professionalised service and accrue efficiencies. Staffing budgets could be allocated on a neighbourhood basis with each area holding a budget and with budgets allocated on the basis of supporting those areas of greatest socio economic disadvantage. The proposal will result in an equivalent reduction of 14 fte's.

3,483 408 0 408 Red Red-Amber Red


Youth Service - Workforce - Community Education Officer Posts - The service employs 26 professionally qualified full time youth workers. With a change of emphasis of roles towards increased youth contact time and less focus on building, budget and staff management potential savings could be identified through a reduction in full time staffing. Based on an area staffing allocation an indicative saving of 6 fte posts could be identified.

3,483 252 0 252 Red-Amber Red-Amber Red-Amber


Youth Service - Partnership and Delivery Venues - Youth service provision is delivered at 22 neighbourhood youth centres. 8 of these are based on school sites, 14 in community youth centres. Additionally part time youth work provision is delivered from 8 satellite ‘community’ buildings. A number of the centres are not fit for purpose and/or are not occupied to full capacity. With a view to moving towards reinvesting in shared provision and utilising other service buildings, a proposed service restructure would look at youth work being delivered in partnership with schools and other service providers such as leisure and community centres. Indicative savings can be made through releasing 9 youth centre buildings. Releasing 9 full time youth service buildings would realise a potential saving of at least £91k to the youth service.

3,483 91 0 91 Red Red-Amber Red

Page 55 of 110

APPENDIX 5





School Redundancy Budget - From April 2011 the Service delegated the responsibility for any overpsend on this budget to schools 'collectively'. Whilst in the 2011/2012 financial year this budget is projected to overspend by £130k a recent study by officers have revealed that the identification of staff to be released in schools does not always follow the most efficient protocols. Officers believe that if the Council obliged schools to work within more constrained protocols this would facilitate a much greater use of redeployment thus reducing the call on this budget. An initial target has been put at £100k for the forthcoming financial year.


2,785 961 1,824

139Shared Services - Transformation

Accept

Commissioning and Procurement - Facilities Management - This will result in reductions for the building repair and maintenance controllable budget of £2.4m on external spend, subject to the procurement of goods and services in a timely manner. The Category Management Plan opportunity has highlighted achievable savings of which £170k is considered a realistic figure.



AcceptCommissioning and Procurement - ICT - The Category Management plan has identified a range of savings in this area and in addition the proposal reflects the centralisation of ICT budgets.

2,076 108 108 0 Red-Amber Amber-Green Green


AcceptCommissioning and Procurement - Commensura - FYE 2011/12 - The £10k saving is related to the negotiation of the on-cost fees. 10 10 0 Green Green Green


AcceptCommissioning and Procurement - Transport Fleet - The Category Management plans have indicated a saving of £500k can be achieved against the external spend in this area.



AcceptCommissioning and Procurement - Passenger Transport - The Category Management plans have indicated a saving of £200k can be achieved against the external spend in this area.



Accept

Commissioning and Procurement - Vehicle parts, tyres, repair/maintenance and plant - The Category Management plans have indicated savings of £210k can be achieved against the external spend in this area. This will reflect the reduction of spend in vehicle parts, tyres and maintenance as new vehicles will be supplied reducing the age profile of the fleet. The saving represents a part year effect as implementation will happen in the later part of the year.



Accept

Fleet Reduction Authority wide - The proposal is based on a reduction of vehicles as this will be required to drive out savings over and above the category management process. This is only achievable if service areas release vehicles once they have been highlighted by Central Transport Services.The intention would be to undertake analysis on categories of vehicles including vehicle utilisation.

9,500 372 372 0 Red-Amber Red-Amber Green


Accept

Facilities Management Organisation (FM Project) - The facilities management functions across the Council are being centralised with effect from April 2012. This will provide opportunities for economies of scale and other efficiencies which will release an estimated saving of £762k in 2012/13. All buildings will be maintained to the standard of warm, safe and water tight to ensure savings are achieved.



AcceptBusiness Administration - FYE 2011/12 - 4 Posts deleted in 2011/12. Full Year effect in 2012/13. 18 18 0 Green Green Green

Total Education

Page 56 of 110

APPENDIX 5





AcceptICT Staff Efficiency / Reorganisation - FYE 2011/12 - the full year effect of 4 posts released during 2011/12. 90 90 0 Green Green Green


AcceptBusiness Administration - 2012/13 - reduction of 4 fte's.



AcceptCommunications & Media - Reduced Print Spend - £50k saving to be made from reduction in corporate print and advertising spend with processes in place to reduce unapproved advertising activity.



Accept

Communications & Media - Advertising Income - £45k will be generated from advertising (Capital Times & Queen St screen) and appropriate charges for communications and media services including charges for resouces ustilised for grant funded communication projects which is relected in Service Level Agreements with service areas.



AcceptCentral Transport Service restructuring - The saving will be achieved through a restructuring of posts within the Centralised Transport Service. 1,800 113 113 0 Green Green Green




AcceptManagement Structures - Tier 3 review - FYE 2011/12 - 1 fte post was deleted during 2011/12. This saving represents the full year effect of this deletion in 2012/13. 17 17 0 Green Green Green


AcceptICT Staff Efficiency / Reorganisation - 2012/13 - Deletion of two posts; Senior IT Consultant - SO1/PO3 and Principal Applications Support & Training Officer - SO1 / PO2



ICT - Removal of Shared Business Continuity Server Room - Cardiff ICT, in a consortium with other authorities, has maintained a shared disaster recovery service consisting of a server room with a number of fully-equipped computers designed to provide an emergency service. This consortium expires in 2012, and no longer fits well with business needs given the council's higher aspirations on business continuity. The equipment is leased, and the final lease payment was made this year. Giving up this service does not significantly affect our current business continuity position.

41 41 41 0 Red-Amber Green Green


Trade Union time off and facilities agreement - Removal of existing budget provision used as reimbursement to service areas for time off approved for senior TU representatives to engage and support current single status implementation.



ICT Budget Reduction - A budget of £500k is maintained in order to support the general replacement and renewal of ICT equipment and related initiatives. The savings proposal will reduce future flexibility and opportunities in this area.



Connect to Cardiff (C2C) - Reduction in Opening Hours - The savings target can only be achieved by reducing the Contact Centre opening hours, in order to 'release' fte staff savings. C2C currently opens 8am-7pm Mon-Fri and 9am-12.30pm on Saturdays. To achieve the £108k saving, opening hours would need to change to 8am-5pm Mon-Fri, with the centre closing on a Saturday. The establishment could then be reduced by 1 Team Leader and 4 Customer Service Representatives.

1,532 108 0 108 Red-Amber Amber-Green Red

Page 57 of 110

APPENDIX 5





Reduction of resources in HR People Services -The proposal would have a fundamental effect on service delivery and would result in the loss of more than 20% of its workforce at a time when the service is already reducing its staff as part of the implementation of the HR People Services Project.The service is already supporting a number of key initiatives including single status with staffing resources under significant pressure, therefore accepting this saving would impact on the capacity of the service to provide an effective level of support to the Council and its service areas including schools.

3,870 355 0 355 Red Red Red

3,505 2,892 613Grand Total 26,505 14,179 12,326Total Shared Services

Page 58 of 110

APPENDIX 6

Citizen Focus £000

Commissioning and Procurement

£000Service Re-design

£000Shared Services

£000Total £000

Adult Services 300 855 24 1,179Children's Services 300 40 15 355City Development 130 259 37 426City Management 150 1,069 44 1,263City Services 539 872 3 1,414Communities 756 493 315 1,564Corporate Services 224 107 181 512Education 50 97 261 408Shared Services 1,620 38 1,193 2,851Total 756 3,313 3,830 2,073 9,972

20010,172

SERVICE AREA TRANSFORMATION SAVINGS SUMMARY 2012/13

Wave 2 Transformation SavingsTotal Transformation Savings 2012/13

Page 59 of 110

EARMARKED RESERVES GENERAL FUND

APPENDIX 7(a)

Estimated Movements 2012/13To finance

revenue budget

Other commitments

£000 £000 £000 £000

1 Approved Grants - Revenue Assistance to Industry

9 (9) 0 To carry forward funds to cover the cost of revenue grants awarded in a financial year but which do not become liable for payment until later years.

2 Asylum Seeker Leased Properties Reserve

803 (189) (450) 164 To fund dilapidation costs of properties leased to provide accommodation for asylum seekers.

3 Bereavement Services Reserve 3 (3) 0 To fund a planned programme of refurbishment and improvement.

4 Bute Park Match Funding Reserve 212 212 For the conservation and improvement of Bute Park, to match fund the Heritage Lottery Fund grant.

5 Cardiff Dogs Home Legacy 25 25 Legacy left to Cardiff Dogs Home to be used for the Home.

6 Cardiff Insurance Reserve 4,761 (200) 4,561 To protect the Council from future potential insurance claims.

7 Carefirst Reserve 903 903 To fund the procurement and implementation of new IT system in Children's and Adult Services.

8 Central Market Minor Works Reserve 1 (1) 0 To fund future expenditure on minor works at Central Market.

9 Central Square Public Realm 140 (140) 0 To fund expected expenditure relating to the new Central Business District.

10 Centralised Transport Services Vehicle Reserve

334 334 To use net savings from Centralised Transport Services, to assist with future vehicle funding arrangements.

11 City Hall Functions Reserve 20 (20) 0 To fund future expenditure on the replacement of equipment.

12 City Management Operational Reserve 142 (87) 55 To support measures which increase productivity and efficiency or customer improvements within City Management.

13 Commonwealth Local Government Forum Reserve

11 (11) 0 Funding from the Commonwealth Local Government Forum in respect of the Commonwealth Local Government Good Practice Scheme. The conference was held in 2011 and all accounts can now be closed.

14 Corporate Initiatives Reserve 1,066 (300) 766 To provide funding for forthcoming corporate initiatives that positively impact on the economic prosperity of Cardiff and its capital city status.

15 Design & Construction IT Reserve 33 (33) 0 To use surpluses generated by Design & Constructionto fund future IT developments.

Title Estimated balance at 31.03.12

Estimated balance at 31.03.13

Purpose

Page 60 of 110


APPENDIX 7(a)


revenue budget

Other commitments

£000 £000 £000 £000



Purpose

16 Drug Intervention Programme (DIP) 100 100 The DIP grant carry forward consists entirely of funding required to deal with future property commitments.

17 Energy Conservation 164 9 173 A fund which allows investment in energy savings schemes, the cost of which is recovered from services over an agreed number of years.

18 Energy/Carbon Reduction Reserve 496 (350) 146 To provide funding for future energy price rises and for the Council's liabilities under its carbon reduction commitment.

19 Equal Pay Reserve 1,889 1,889 To fund the costs of future Equal Pay payments once the current negotiations have been finalised.

20 Euroclad reserve 25 (25) 0 Reserve to cover committed contribution to the Welsh Government for maintenance contracts for Euroclad.

21 Extracare Reserve 120 120 To offset the anticipated costs associated with the provision of a new community care and low level housing support scheme.

22 Flatholm Project 24 (19) 5 To fund items such as major boat repairs, essential for effective operation of Flatholm Project.

23 Fraud Detection Reserve 184 (45) 139 To utilise additional income received from the Department of Works and Pensions arising from the prosecution of housing benefit fraud cases. The reserve will supplement staffing and other costs associated with this area of work.

24 Grant Management IT costs 44 (44) 0 To provide IT software to facilitate a strategic approach in co-ordinating the attraction of external funding.

25 Harbour Project and Contingency Fund 620 (53) 567 To fund expenditure for the improvement and enhancement of infrastructure, assets, activities or services in or around the Bay.

26 Health and Wellbeing 31 (31) 0 This balance is a mixture of grant/contributions from previous financial years and cover areas of Local Health Alliance, Walking for Health and Healthy Cities. Funding pressures on all 3 areas is due to have an impact and these balances are expected to be utilised in 2011/12.

Page 61 of 110


APPENDIX 7(a)


revenue budget

Other commitments

£000 £000 £000 £000



Purpose

27 House Mortgages 55 (10) 45 This represents surpluses on the fund to be used to meet future deficits.

28 Housing Benefit Reserve 1,671 (525) 1,146 To fund homeworking, landlord liaison schemes, staff training, software development and accommodation refurbishment.

29 ICT Schools Practice Account 22 (22) 0 To fund ICT services in schools.30 Integrated Partnership Strategy 11 (11) 0 To continue to provide funding for the Integrated

Partnership Strategy.31 Kitchen Improvement 248 (248) 0 To fund refurbishments of primary school kitchens

that do not meet health and safety standards.32 Legal Case Management System 5 (5) 0 To fund the introduction of a case management

system and the purchase of associated equipment.

33 Lifelong Learning Funding Reserve 245 (145) (100) 0 This reserve represents surpluses generated from franchise funding, to be used to support the provision of adult learning courses.

34 Local Plan Reserve 166 166 To provide for the cost of the Local Development Plan.

35 Local Service Board Initiative Reserve 63 (34) 29 To fund scrutiny work in connection with the Local Service Board.

36 Major Projects Reserve 20 (20) 0 To provide a contingency for any additional revenue funding required in connection with major projects.

37 Members Development 16 (5) 11 To fund member development programmes including induction of new Members following the 2012 Council elections.

38 Municipal Election Reserve 156 (156) 0 To provide for the cost of local elections.39 Music Service Reserve 19 19 To be used to help support the Schools Music

Service.40 New Theatre Upgrades 72 (72) 0 To fund capital works to improve seating in the Upper

Circle and replace the stage lighting control desk.

41 Parking Reserve 773 (147) 626 This represents surpluses on street parking schemes which, under the Road Traffic Act 1984, have to be reinvested in Road Traffic Schemes.

42 Impact on Design Reserve 45 (45) 0 To enable future flexibility to deal with design issues.

Page 62 of 110


APPENDIX 7(a)


revenue budget

Other commitments

£000 £000 £000 £000



Purpose

43 HRPS Initiatives Reserve 145 (24) 121 To fund various staff initiatives: HR on-line, re-organisation of IT, Cardiff Works reception.

44 Pressures arising from Homelessness 1,375 (200) 1,175 This reserve is to be partially used to reduce the capital financing costs for the new single Assessment Centre with the balance to meet increases in homelessness pressures.

45 Procurement Initiatives Reserve 70 (37) 33 Funding required to meet future costs of procurement initiatives including Xchange Wales.

46 S.E.N Unit Reserve 62 (20) 42 Required to meet unexpected school related items including teachers premature retirements/ redundancies.

47 Schools Catering 691 (100) 591 To be used to support the Schools Catering Service.

48 Schools Cleaning 95 (15) 80 To be used to support the Schools Service Cleaning.

49 Schools Formula Funding Reserve 92 (40) 52 Contingency Fund set aside to meet unplanned and unforeseen expenditure incurred by or on behalf of the delegated schools' budgets.

50 Schools Organisation Plan 9,191 (160) 9,031 The balance carried forward at the end of each year reflects the future costs of the Schools Organisation Plan.

51 Scrutiny Development & Training Reserve

57 (27) 30 To fund Member development and training.

52 Single Status Reserve 8,300 (5,000) 3,300 To meet the costs associated with Single Status (Job Evaluation).

53 Supporting People Reserve 3,279 (250) 3,029 To smooth the impact of anticipated future grant fall-out.

54 Telephone Switchboard Reserve 156 (156) 0 To fund planned upgrades of existing hardware and software as new technology becomes available.

55 Valuers Reserve 71 (30) 41 To fund external valuer's fee incurred as part of updating asset valuations every five years.

56 Workshops Asset Maintenance Reserve

19 19 To assist in the asset maintenance requirements of the Council's managed workshops.

Total 39,350 (1,314) (8,291) 29,745

Page 63 of 110

Earmarked Reserves HRA APPENDIX 7(b)

Estimated Movements 2012/13

To finance budget

Other commitments

£000 £000 £000 £000HRA / Housing IT Reserve 1,129 (1,129) 0 To meet the HRA contribution

towards the capital cost of the Enterprise Architecture .

TOTAL 1,129 0 (1,129) 0

HRA GENERAL RESERVEEstimated Movements 2012/13

To finance budget

Other commitments

£000 £000 £000 £000General Housing Reserve 6,837 0 6,837 General housing balancesTOTAL 6,837 0 0 6,837



Purpose



Purpose

Page 64 of 110

SCHOOLS RESERVES APPENDIX 7(c)

To finance budget

Other commitments

£000 £000 £000 £000Balances on Schools' Delegated Budgets including nursery schools

4,025 (500) 3,525 These are the carry forward of schools' surpluses and deficits under Local Management of Schools. These balances are not available to the Council for general use. The drawdown of £500,000 is an estimated figure and will depend upon decisions taken by individual school governing bodies.

Primary/Special DSU Repairs Reserve

23 23 Contingency fund out of which participating schools share the cost of funding large items of repairs and maintenance work.

TOTAL 4,048 0 (500) 3,548



Purpose

Estimated Movements 2012/13

Page 65 of 110

APPENDIX 8

Ref Impact on posts Saving / Pressure Grade* Job Title Voluntary

Severance Vacant Redeploy Various/ tbc New Post Total fte's

Adult Services

1 Deleted SV5 P03 Registered Manager (1.00) (1.00)2 Deleted SV5 SC2 Higher Clerical Assistant (1.00) (1.00)3 Deleted SV5 SCP 20-24 Senior Care Officer (3.00) (1.00) (3.00) (7.00)4 Deleted SV5 SC1/3 Care Assistant (13.00) (3.00) (16.00)5 Deleted SV5 SC1/3 Night Care Assistant (4.00) (3.00) (7.00)6 Deleted SV5 MGD4 Cook (1.00) (1.00) (2.00)7 Deleted SV5 MGD1 Domestic (5.00) (1.00) (6.00)8 Deleted SV5 MGD1 Kitchen Domestic (1.00) (1.00) (2.00)9 Deleted SV5 MGD1 Laundry Assistant (2.00) (2.00)10 Created FP1 NEW Occupational Therapist 3.00 3.0011 Created FP2 NEW Social Work Assistants 2.00 2.0012 Created FP3 NEW Counsellor 1.00 1.00

Adult Services Net Position (29.00) (1.00) (14.00) 0.00 6.00 (38.00)

Children's Services

13 Created FP7/9 NEW Social Worker 9.00 9.0014 Created FP7 NEW Duty Manager 1.00 1.0015 Created FP7/8 NEW Business Support Officer 4.00 4.0016 Created FP8 NEW Development & Co-ordination Officer 1.00 1.00

Children's Services Net Position 0.00 0.00 0.00 0.00 15.00 15.00

City Development

17 Deleted SV34 SC5 - SO2 Sustainability Officer (1.00) (1.00)18 Deleted SV37 PO1/3 Planning Officer - Team Leader (0.60) (0.60)19 Deleted SV33 SO1/2 Senior Adminstrative Officer (1.00) (1.00)20 Created FP11 NEW Community Infrastructure Levy Officer 1.00 1.0021 Created FP12 NEW Sustainable Homes Project Officer 0.50 0.5022 Created FP13 NEW Local Economic Development Officer: Procurement 1.00 1.00

City Development Net Position (1.00) (1.00) 0.00 (0.60) 2.50 (0.10)

City Management

23 Deleted SV55 MG2 Stage Door Keeper (1.00) (1.00)24 Created SV55 SC2 Performance Supervisor 0.40 0.40

All figures are expressed in terms of full time equivalent posts

EMPLOYEE CHANGES

Page 66 of 110

APPENDIX 8




25 Deleted SV56 SO1 House Manager (1.00) (1.00)26 Created SV56 SC5 Duty Manager 0.50 0.5027 Deleted SV59 PO3 Team Leader (Enforcement) (2.00) (2.00)28 Deleted SV50 SC5/6 Facilities Support Officer (1.00) (1.00)29 Deleted SV51 MGD Misc Head Gardner (1.00) (1.00)30 Deleted SV46 Various Business Administration (2.00) (2.00)31 Deleted SV53 Various Tier 4 (2.00) (2.00)

City Management Net Position (4.00) (2.00) 0.00 (4.00) 0.90 (9.10)

City Services

32 Created FP31 NEW Community Sweeper 8.00 8.00City Services Net Position 0.00 0.00 0.00 0.00 8.00 8.00

Communities

33 Deleted SV97 PO4 Resources Manager (1.00) (1.00)34 Deleted SV99 SC2 Higher Clerical Officer (0.50) (0.50)35 Deleted SV99 SC1/2 Receptionist (1.00) (1.00)36 Deleted SV83 OM2 Operational Manager Trading Standards & Licensing (1.00) (1.00)37 Deleted SV81 SC4 Customer Support Supervisor (1.00) (1.00)38 Deleted SV81 SC1/3 Customer Support Officer (0.50) (0.50)39 Deleted SV79 Various Neighbourhood Learning (14.72) (14.72)40 Deleted SV84 SC3 Caretaker (0.64) (0.64)41 Deleted SV80 Various Benefits Service (6.00) (6.00)

Communities Net Position (2.14) (2.00) 0.00 (22.22) 0.00 (26.36)

Corporate Services

42 Deleted SV109 SC5/6 Auditor (0.20) (0.20)43 Deleted SV109 PO2/3 Accountant (0.10) (0.10)44 Deleted SV114 SO1/PO3 Health & Safety Advisor (0.50) (0.50)45 Created FP40 NEW Procurement Lawyer 1.00 1.00

Corporate Services Net Position 0.00 0.00 0.00 (0.80) 1.00 0.20

Education

46 Deleted SV129 SC5 Administration Finance Officer (1.00) (1.00)47 Deleted SV133 Soulbury 23 Senior Achievement Leader (1.00) (1.00)48 Deleted SV133 Soulbury 22 Achievement Leader (2.00) (2.00)

Page 67 of 110

APPENDIX 8




49 Deleted SV133 SC4 Research & Information Officer (1.00) (1.00)50 Deleted SV133 SC4 Data Inputter (1.00) (1.00)51 Deleted SV133 SO2 Senior Adminstrative Assistant (1.00) (1.00)52 Deleted SV134 PO1 Service Manager - Youth Development (1.00) (1.00)53 Created FP46 NEW Teacher 1.00 1.0054 Created FP46 NEW Teaching Assistant 6.00 6.0055 Created FP46 NEW Teachers Aide 5.00 5.0056 Created FP47 NEW Attendance Officer 10.00 10.0057 Deleted SV124 SC5/6 Administation & Finance Officer (1.00) (1.00)58 Deleted SV124 SC4 Clerical Officer (1.00) (1.00)59 Deleted SV124 SC3 Senior Clerical Assistant (1.00) (1.00)60 Deleted SV124 SC2 Higher Clerical Assistant (1.85) (1.85)61 Deleted SV124 SC4 Research and Information Officer (EMAS) (1.00) (1.00)62 Deleted SV124 SC1 Clerical Assistant (1.00) (1.00)63 Deleted SV124 SC2 Clerical Assistant (4.00) (4.00)

Education Net Position (3.00) (7.85) (4.00) (4.00) 22.00 3.15

Shared Services

64 Created FP50 NEW Customer Service Representative 5.00 5.0065 Deleted SV152 SC4/5 Assistant Transport Co-ordinator (1.00) (1.00)66 Deleted SV152 SC5/6 Business Support Officer (1.00) (1.00)67 Deleted SV152 SC5/6 Tacograph Officer (1.00) (1.00)68 Deleted SV152 SC4/5 Transport Training Assistant (1.00) (1.00)69 Deleted SV152 Craft Stores Person / Driver (1.00) (1.00)70 Deleted SV152 SC6 Customer Controller (1.00) (1.00)71 Deleted SV149 SO1-PO3 Senior IT Consultant (1.00) (1.00)72 Deleted SV149 SO1-PO2 Principal Application Support & Training Officer (1.00) (1.00)73 Deleted SV149 SC1/4 Support Assistant (0.40) (0.40)74 Deleted SV149 Various Business Administration (2.80) (2.80)

Shared Services Net Position (3.00) 0.00 0.00 (8.20) 5.00 (6.20)Total All Services (42.14) (13.85) (18.00) (39.82) 60.40 (53.41)

* All new posts created will be allocated to an appropriate grade within the Council's New Pay and Grading structure once they have been assessed.

Page 68 of 110

APPENDIX 9(a)

Income Source Price Change % Increase Effective Date Comment £ADULT SERVICES

1 Client/Staff meals Nil Nil See comment No proposed increase. The current charge is £2.80 which was increased in 2011/12.

2 Domiciliary Care Income Nil Nil See comment Any increase would impact on approximately 160 users. The current charge of £10.21 will remain.

3 Residential Home fees Nil Nil See comment No proposed increase. These charges are based on a means tested financial assessment.

4 Hafod Contract Care Income See comment See comment 1 September 2012 The fees are specified per property as per the care contract and are increased annually in line with the pay award.

5 Rental income (Hafod Homes)

See comment See comment 1 April 2012 Five year review mechanism due for review in 2014/15.

CITY DEVELOPMENT6 Loan Administration Fee Nil Nil See comment There is now one flat rate for Loan Administration

regardless of amount of loan. No proposed increase to current charge of £250.

7 Equity Administration Fee Nil Nil See comment No proposed increase. The current charge is £1,000 and was increased by £800 in 2011/12.

8 Permitted Development Enquiries

Nil Nil See comment No proposed increase. The current charge is £25 and was introduced in 2011/12.

9 Tree Preservation Orders-search and copy of information

Nil Nil See comment These extracts are available electronically free of charge.

10 Admin Fee from Section 106 Agreements

Nil Nil See comment No proposed increase. The current charge is 4% of the agreement price.

SUMMARY OF PROPOSED FEES & CHARGES 2012/13: GENERAL FUND

Page 69 of 110

APPENDIX 9(a)

Income Source Price Change % Increase Effective Date Comment £


CITY MANAGEMENT11 Advert charge in Show

brochure - per full page - twice yearly

Nil Nil See comment No proposed increase. The current charge is £3000 per full page advert in main show brochure -twice yearly.

12 Booster seat hire for children Nil Nil See comment No proposed increase. The current charge is £1.

13 St David's Hall - Lettings -(Auditorium Hires)

Nil Nil See comment There are no proposed increases.

14 Commercial Catering DSU Various Various See comment Menu price constantly reviewed on a commercial basis.

15 Cardiff Castle Gift Shop Various Various See comment Determined by mark-up to cover required profit margin.

16 Cardiff Castle Entrance Nil Nil See comment There are no proposed increases with effect from 1 April 2012. However, this area is currently being reviewed and will consider any price changes during the year.

17 Cardiff Castle Conference and Events- Room Hire

See comment See comment See comment There are no proposed increases with effect from 1 April 2012 with the exception of hire of Undercroft. This will increase by £50 per hour. The hourly rates range from £100 to £500 depending on room.

18 City Hall Conference and Events-Room Hire

See comment 2.00 1 April 2012 The increase is 2%. The price increases range between £1 and £40 respectively. These reflect the different prices for weekends and week days and duration of booking.

Page 70 of 110

APPENDIX 9(a)



19 Mansion House Hire See comment See comment 1 April 2012 The increases range between 2.1% and 2.4% and have been rounded for ease of collection. The price increases range between £5 and £9 respectively. A 30% discount on room hire is offered to registered charities.

20 Mansion House Wedding Packages

See comment See comment 1 April 2012 The increases range between 1.45% and 2.03% and have been rounded for ease of collection. The price increases range between £1 and £13 dependant on package chosen.

21 Sophia Gardens - Car Park Nil Nil See comment No proposed increase to charges for parking in Sophia Gardens due to competition from city centre car parks and to remain consistent with the tariffs of other Council city centre car parks.

22 Heath Park Car Park - All day flat rate

0.50 20.00 1 April 2012 Proposed new charge is £3.

23 Roath Park Conservatory See comment See comment 1 April 2012 Adult prices have increased by £0.10 and Childrens prices have remained unchanged. Adult season tickets have increased by £0.75 and duck/fish food has increased by £0.05.

24 Cardiff Caravan & Camping Park charges pitch per night - Max 2 adults or Family with 2 adults and 2 children

Various See comment 1 January 2012 The previous pricing structure has been simplified with one rate for both caravans and tents. The proposed new rates range from £22 to £30 depending on 'peak' or 'off peak' rate and use of electric. Occupancy levels are now limited.

Page 71 of 110

APPENDIX 9(a)



25 Supplements for additional occupants for all pitch rates - per night

New charge See comment 1 January 2012 This new charge will apply to any guests in excess of maximum occupancy. The proposed charge is £6 for adults and £2 for children.

26 High use of electricity - per night

See comment See comment 1 January 2012 This rate will be applied when excess levels of electricity are used. The proposed fee is £3 per night.

27 Allotments 0.26 to 5.35 11.00 2 February 2012 Proposed annual charge of £5.62 per perch Category A. £5.48 per perch Category B. £5.26 per perch Category C, Brick Cubicle £13.16 Chalet £53.95. The Chalet concession charge will be £26.97.

28 Boating - Roath Park Lake 0.20 to 0.50 5.26 to 11.11 1 April 2012 Proposed increases range between £0.20 and £0.50 and have been rounded for ease of collection. Childrens charges have remained unchanged.

29 Fishing Roath Park Lake See comment See comment 1 April 2012 No proposed increase for fishing with the exception of adult daily permits which will increase by £0.40.

30 Castle Mews Car Park Nil Nil See comment No proposed increases to current charges.31 North Road Car Park Nil Nil See comment No proposed increases to current charges.32 Residents parking permits Nil Nil See comment There are no proposed increases to the current

charges of £5 for first permit,£30 for second, £45 for third and £60 for fourth. However, a review is underway to limit the number of permits to a maximum of two per household.

33 On Street Parking Nil Nil See comment No proposed increases to current charges.34 Skips - Standard charge 0.50 1.67 1 April 2012 Proposed new charge is £30.50.35 Skips - Unauthorised 10.00 10.00 1 April 2012 Proposed new charge is £110.

Page 72 of 110

APPENDIX 9(a)



36 Excavation in the public highway

Nil Nil 1 April 2012 No proposed increase. The current charge is £100.

37 Excavation in the public highway - Section 50


38 Storage of building materials on the highway

Nil Nil 1 April 2012 No proposed increase. The current charge is £69.50.

39 Containers sited on the public highway


40 Cranes - Small Nil Nil 1 April 2012 No proposed increase. The current charge is £70.

41 Cranes- Large Nil Nil 1 April 2012 No proposed increase. The current charge is £250.

42 Permits for hoardings on the public highway


43 Scaffold licences - small less than 2 weeks


44 Scaffold licences - large for 2 weeks


45 Scaffold licences - monthly inspections


46 Vehicle crossovers Nil Nil 1 April 2012 No proposed increase. The current charge is £90.

47 RASWA Income - Sample Inspection


48 Advertising Frame Permits Nil Nil 1 April 2012 No proposed increase. The current charge is £120.

49 Survey data Nil Nil 1 April 2012 No proposed increase. 50 Heliport landing Fees (per

500kg)Nil Nil 1 April 2012 No proposed increase. The current charge is

£10.67 per 500kg except where discounted rate agreements are in place.

51 Heliport Fuel Nil Nil 1 April 2012 No proposed increase.Page 73 of 110

APPENDIX 9(a)



52 Central Bus Station departure charges

Nil Nil 1 April 2012 No proposed increase. The current charge is £0.65 local and £2.99 long distance.

53 Events Park & Ride Nil Nil 1 April 2012 No proposed increase. The current charges range from £5 to £10 .

54 Shoppers Park & Ride( Excluding Cardiff East)


55 Shoppers Park & Ride- Cardiff East


56 Flatholm See comment See comment 1 March 2012 These cover workshops, camping, fishing, conservation weekends, landing fees, boat costs, filming and provision of food. The fee increases range from £3 to £35. This represents a change between 4.44% and 16.67%.

57 Norwegian Church - Room hire

See comment See comment 1 April 2012 Proposed increases range between 8.1% and 10%. Hire of PA/ Audio equipment remains unchanged. Price increases range between £1.50 and £150.

HARBOUR AUTHORITY58 Navigation fee per metre 0.80 4.17 1 April 2012 Proposed new charge is £20.59 Permission to moor per metre 0.50 3.91 1 April 2012 Proposed new charge is £13.30.

60 Provision of mooring 3.00 4.05 1 April 2012 Proposed new charge is £77.61 Commercial operators licence 5.00 3.70 1 April 2012 Proposed new charge is £140 for the licence plus

10 pence per passenger carried.

62 Launching permits for sailing craft, motor craft or multi person rowing craft

0.75 8.57 1 April 2012 Proposed new charge is £9.50.

Page 74 of 110

APPENDIX 9(a)



63 Launching permits for single person rowing craft and windsurfers


64 Use of Harbour Authority landing stages.


65 Short stay moorings - Inner Harbour- Per Hour

Nil Nil See comment Fee is paid by coin operated machine and will remain at £1.

66 Car parking fees - Havannah Street

See comment See comment See comment Proposed new charges range from is £1.00 for 1hour to £7.00 for 24 hours.

67 Car parking fees - Havannah Street - Monthly charge

5.00 8.33 1 April 2012 Proposed new charge is £65 per month.

68 Barrage Car Park 0.50 See comment See comment Proposed new charges are £1.00 for 1hour and £1.50 for 2 hours.

69 Bay Sailing Various Various 1 April 2012 The majority of the activities have increased by 6%.

70 Cardiff International White Water

See comment See comment 1 April 2012 Whilst the majority of fees remain unchanged, those that have increased have risen by an average of 12%.

CITY SERVICES71 Active Waste Landfill Tipping

Toll - standard gate feeNil Nil See comment In the current market, it is believed that any

increase in price will result in a reduction of incoming waste and hence income.

72 Residual Waste Bags - Trade Nil Nil See comment In the current market it is believed that any increase in price will result in a reduction of incoming waste and hence income. Therefore it is proposed that prices will remain unchanged.

Page 75 of 110

APPENDIX 9(a)



73 Recycling Bags - Trade Nil Nil See comment In the current market it is believed that any increase in price will result in a reduction of incoming waste and hence income. Therefore it is proposed that prices will remain unchanged.

74 Automatic Public Conveniences

Nil Nil See comment No proposed increase to current fee of £0.20.

75 Private Sewers (per Hour) 4.54 5.00 1 April 2012 Proposed new charge is £95.34. 76 Charges for temporary signs 2.50 5.00 1 April 2012 Proposed new charge is £52.50.

77 Chairs on the Public Highway


78 Activities on the Highway See comment See comment See comment Subject to further review.79 Charges for Street

Numbering of Properties80 Individual Plots 1.30 5.00 1 April 2012 Proposed new charge is £27.30.81 Developments with less than

10 Plots6.20 5.00 1 April 2012 Proposed new charge is £130.20.

82 Developments with 10 Plots or more

10.00 per application and 0.50 per plot

5.00 1 April 2012 Proposed new charge is £210 per application and £10.50 per plot

COMMUNITIES83 Workshop Rents See comment See comment See comment Subject to conditions of lease. Rents reviewed on

a commercial basis.84 Day Nursery Rental charge in

St Mellon's EnterpriseNil Nil See comment Subject to conditions of lease. Rents are reviewed

on a commercial basis.

85 St Mellon's Enterprise Centre -10 units

Nil Nil See comment Subject to conditions of lease. Rents are reviewed on a commercial basis.

86 Jasmine Enterprise Centre - 5 units

Nil Nil See comment Subject to conditions of lease. Rents are reviewed on a commercial basis.

Page 76 of 110

APPENDIX 9(a)



87 Leisure Services See comment See comment 1 April 2012 Leisure Services will increase by an average of 6%.

88 Food, Drinks & Goods for Resale

See comment See comment See comment Prices increase as catering costs are based on current market rates.

89 Spice Childcare After School Provision

0.15 1.99 1 September 2012 Proposed new charge is £7.70.

90 Spice Holiday Scheme - Half day


91 Spice Holiday Scheme - Full day


92 Community Alarm service - Mobile Response

Nil Nil See Comment No proposed increase. The current charge is £3.56.

93 Community Alarm service - Contact Only

Nil Nil See Comment No proposed increase. The current charge is £1.94.

94 Gypsy Sites - Rent 9.70 Rover Way 9.69 Shirenewton

17.50 15.48

1 April 2012 This is the final year of a 3 year phase and the proposed new charge is £65.11 for Rover way and £72.27 for Shirenewton.

95 Gypsy & Traveller Site Service charge

28.73 54.71 1 April 2012 27% increase on 2011/12 water charge of £18.57 plus a new charge of £5.15 relating to Estate Management and Cleaning.

96 Disabled Facility Grant Income

See comment See comment 1 April 2012 The proposed new charge will be £850 or 15% whichever is the greatest.

97 Monitoring External Organisation Sheltered Housing

As per agreed initial charges on SLA

1.00 1 April 2012 This will be the first increase in 2 years.

98 Targeted Elderly and Renewal Grant Income


99 Private Sector Capital Grant Fee Income


Page 77 of 110

APPENDIX 9(a)



100 Libraries Nil Nil See Comment No proposed increases as no evidence that this will generate additional income and can in fact deter borrowing.

Neighbourhood Learning Courses

101 Full fee - Hourly rate See comment See comment See comment There is no proposed increase. The current charge is £3.30.

102 Course fee for people in receipt of state pension or full-time students - Hourly rate

See comment See comment See comment There is no proposed increase. The current charge is £2.20.

103 Reduced fee for people on a range of benefits - Hourly rate

See comment See comment See comment There is no proposed increase. The current charge is £1.05

104 Fee for specialist Disability programmes - per term


105 Agored Cymru accreditation contribution


106 Cardiff Scientific Services -Analytical Fees

Nil Nil See comment No proposed increase. The current charge is £86.

107 Hackney Carriage and Private Hire Licensing

None Nil See comment Fees can only be recovered in order to finance the cost of providing the service.

108 Animal Licensing Income Nil Nil See comment No proposed increase.109 Gambling Licensing Nil Nil See comment No proposed increase.110 General Licensing Nil Nil See comment No proposed increase.111 Street Trading Nil Nil See comment No proposed increase.112 Pest Control Nil Nil See comment The Pest Control team operate in a competitive

environment and currently charge market rate for treatments. There are no proposed increases for 2012/13.

Page 78 of 110

APPENDIX 9(a)



113 Cardiff Dogs Home Nil Nil See comment No proposed increase. The current charge is £95.

114 Environmental Information Fees

1.50 2.31 See comment Proposed new charge is £66.50. This charge was introduced in 2011/12.

115 Cremation Fees Income 8.00 1.69 1 April 2012 Proposed new charge is £480 as per the Bereavement Strategy to offset income with expenditure over a 10 year period.

116 Burial Fee Income 10.00 1.75 1 April 2012 Proposed new charge is £580 as per the Bereavement Strategy to offset income with expenditure over a 10 year period.

117 Grave Purchase Fee Income 5.00 0.78 1 April 2012 Proposed new charge is £650 as per the Bereavement Strategy to offset income with expenditure over a 10 year period.

118 Cremated Remains Burial 10.00 5.26 1 April 2012 Proposed new charge is £200 as per the Bereavement Strategy to offset income with expenditure over a 10 year period.

119 Cremated Remains Purchase 10.00 3.85 1 April 2012 Proposed new charge is £270 as per the Bereavement Strategy to offset income with expenditure over a 10 year period.

120 Registration Ceremony Fees - Weekdays


121 Registration Ceremony Fees - Weekends


122 Copy Certificates Standard service


123 Copy Certificates - Priority Service (within 24hours)

Nil Nil See comment No proposed increase to the current charge of £12. This charge is for customers who require a priority service and includes an admin charge in addition to the statutory charge of £9.

Page 79 of 110

APPENDIX 9(a)



HMO Licenses124 HMO Licensing - Licensed

properties - Mandatory scheme

Nil Nil 1 April 2012 No proposed increase to the current charge of £700.

125 HMO Licensing - Re-licensing of HMOs subject to mandatory licensing

50.00 25.00 1 April 2012 Re-licensing of HMOs subject to mandatory licensing. Proposed new charge is £250.

126 HMO Licensing - Re-licensing to a new owner on revocation of an existing HMO licence.

Nil Nil See comment This relates to the award of a HMO licence to a new owner on revocation of an existing HMO licence (Mandatory or Additional Licensing). There is no change to current charge of £200.

127 HMO Licensing -Cathays Additional Licensing Scheme

100.00 20.00 1 June 2012 A HMO licence under the Cathays Additional Licensing Scheme. The proposed new charge is £600.


25.00 6.25 1 June 2012 A HMO licence under the Cathays Additional Licensing Scheme where the landlord is accredited under Landlord Accreditation Wales. The proposed charge is £425.


25.00 6.25 1 June 2012 A HMO licence under the Cathays Additional Licensing Scheme where, at the time of first inspection by the licensing officer, the HMO meets all licensing and management standards. The proposed charge is £425 - A £600 fee will be levied with a refund given of £175 where the property is confirmed by the inspecting officer to meet all standards.

Page 80 of 110

APPENDIX 9(a)




25.00 8.33 1 June 2012 A HMO licence under the Cathays Additional Licensing Scheme where the HMO meets all licensing and management standards and the landlord is accredited under LAW. The proposed charge is £325 - A £500 fee will be levied with a refund given of £175 where the property is confirmed by the inspecting officer to meet all standards.

131 The licensing of privately owned purpose built student flats in a purpose built block

Nil Nil See comment No proposed increase. The current charge is £100 per flat.

132 High Hedges Nil Nil See comment Fee set by statute - 50% discount if applicant is on a means tested benefit. The current charge is £320.

133 Notice Charging Nil Nil See comment No proposed increase to fees which range from £170 to £220 depending on type of notice.

134 Housing Immigration Inspection Report


CORPORATE SERVICES

135 Search Fees Nil Nil 1 April 2012 No proposed increase to the current charge of £85.

136 Sale of Land 0.25% of sale price 33.30 1 April 2012 The proposed new charge will be 1% of the sale price.

137 Commercial Property Fees See comment See comment 1 April 2012 All charges to be increased by a range of £5 - £100 which creates an increase range of 3.85 to 14.29%.

138 Sales of Freehold Reversions 25.00 8.33 1 April 2012 Proposed new charge is £325.

Page 81 of 110

APPENDIX 9(a)



EDUCATION139 Music Service Charges-

Maintained Schools - per hour

0.55 1.84 1 September 2012 The new charge is £30.50 per hour.

140 Music Service Charges - Non Maintained Schools - per hour

1.00 3.08 1 September 2012 The new charge is £33.50 per hour.

141 Sale of Courses run by INSET (SLA schools)

Nil Nil See comment No proposed increase. The current charge is £114 per full day course.

142 Sale of Courses run by INSET( Non SLA schools)

Nil Nil See comment No proposed increase. The current charge is £150 per full day course.

143 Storey Arms Various Various 1 September 2012 Average fee increase of 3% with proposed charges ranging from £73.50 to £284.16 dependant on course type and size of group.

144 County Hall Nursery 2.35 5.00 1 April 2012 Proposed new charge is £49.35 per day.145 Childcare Strategy Courses See comment See comment 1 April 2012 Average fee increase of 24%. The price changes

range from £4.95 to £6.98. The increases range between 15% and 38.7%.

146 Essential Skills courses- registration fee per term

Nil Nil 1 April 2012 No proposed increase. The curent charge is £8.50.

147 Llanover Hall - Membership Nil Nil See comment No proposed increase to charges which cover membership, classes and courses and range from £6 to £362.

Page 82 of 110

APPENDIX 9(b)

Income Source Price Change % Increase Effective Date Comment

£1 Pre-assignment enquiries 7.20 1.20 1 April 2012 The proposed new charge is £100.80.2 Landlord consents for leaseholders 7.20 0.65 1 April 2012 The proposed new charge is £186.3 Postponement of Right to Buy charge 7.20 1.20 1 April 2012 The proposed new charge is £100.80.4 Administration charge for major works 12% of fee (capped

at £250)2% + £50 on cap 1 April 2012 The proposed new charge is 12% of the fee and is

capped at £250.5 Leaseholders Sub-Letting Charge See comment See comment 1 April 2012 This is a new charge proposed for leaseholders who sub-

let their properties which will cover the Council's administrative costs and will be £30.

6 Leaseholder Management Fee 3.00 1.88 1 April 2012 The proposed new charge is £163.7 Council Dwellings Rent Various 4.92 2 April 2012 As per Welsh Government determination and guidance

received.8 Council Dwellings Service Charge Various Various 2 April 2012 This covers hostels, flats, sheltered and leased

accommodation, special services and estate maintenance. Detailed analysis currently being undertaken to identify service costs - increases will be in line with inflation or set at a level which covers costs.

9 Garage rents - Tenants 0.23 4.92 2 April 2012 The proposed new charge is £4.90 per week and is in linewith rent increase as per Welsh Governmentdetermination.

10 Garage rents - Private Let 0.29 4.92 2 April 2012 The proposed new charge is £6.12 per week and is in linewith rent increase as per Welsh Governmentdetermination.

11 Garage rents with water - Tenants 0.33 4.92 2 April 2012 The proposed new charge is £7 per week and is in linewith rent increase as per Welsh Governmentdetermination.

12 Garage rents with water - Private Let 0.39 4.92 2 April 2012 The proposed new charge is £8.22 per week and is in linewith rent increase as per Welsh Governmentdetermination.

SUMMARY OF PROPOSED FEES & CHARGES 2012/13: HOUSING REVENUE ACCOUNT

Page 83 of 110

APPENDIX 9 (c)


£CITY MANAGEMENTTennis

1 Double & Singles per court - 1 hour 0.30 6.67 1 April 2012 Proposed new charge is £4.80.

2 Children & OAP per court - 1 hour Nil Nil See comment No proposed increase. The current charge is £2.50.

Bowls3 Adults - 1 hour 0.25 8.33 1 April 2012 Proposed new charge is £3.25.

4 Children & OAP - 1 hour Nil Nil See comment No proposed increase. The current charge is £2.50.

5 Season Tickets (Adults) 7.00 6.67 1 April 2012 Proposed new charge is £112.

6 Season Tickets (OAP) 2.00 3.64 1 April 2012 Proposed new charge is £57.

7 Season Tickets (Junior/Youth) Nil Nil See comment No proposed increase. The current charge is £23.

8 Hire of Woods (set of 4) per person 0.30 17.65 1 April 2012 Proposed new charge is £2.

Indoor Bowls-Splott Park Pavilion WinterPeriod

9 Adult - 1 hour 0.30 13.64 1 April 2012 Proposed new charge is £2.50.

10 Juniors & OAP - 1 hour Nil Nil See comment No proposed increase. The current charge is £1.30.

11 Max card - 1 hour 0.20 15.38 1 April 2012 Proposed new charge is £1.50

12 Deckchair Hire Nil Nil See comment No proposed increase. The current charge is £3.50.

13 Hire of Pavilions (per hour) 6.00 31.58 1 April 2012 Proposed new charge is £25

SUMMARY OF PROPOSED FEES & CHARGES 2012/13: PARKS AND SPORTS

Page 84 of 110

APPENDIX 9 (c)


£


Winter Sports grass pitches and changing facilities

14 Pitch & changing facilities Nil Nil 1 April 2012 No proposed increase. The current charge is £38.

15 Pitch only Nil Nil 1 April 2012 No proposed increase. The current charge is £20.50.

16 Training area & changing facilities Nil Nil 1 April 2012 No proposed increase. The current charge is £15.76

17 Mini/Junior/Youth Pitch & changing facilities

Nil Nil 1 April 2012 This charge applies to non registered teams. No proposedincrease to current charge of £32.50.

18 Mini/Junior/Youth Pitch only Nil Nil 1 April 2012 This charge applies to non registered teams. No proposedincrease to current charge of £20.05.

19 Mini football/rugby registration fee under 11s

Nil Nil 1 April 2012 This charge is now extended to include rugby and willremain at £30.

20 Mini football/rugby registration fee over 11s

Nil Nil 1 April 2012 This charge is now extended to include rugby and willremain at £50.

Summer Sports grass pitches and changing facilities

1 April 2012

21 Cricket pitch & changing facilities Nil Nil 1 April 2012 No proposed increase. The current charge is £26.80.

22 Baseball pitch & changing facilities Nil Nil 1 April 2012 No proposed increase. The current charge is £38.23 Baseball Pitch only Nil Nil 1 April 2012 No proposed increase. The current charge is £20.50.

Cricket Vouchers 1 April 201224 Purchase in advance - 10 vouchers Nil Nil 1 April 2012 No proposed increase. The current charge is £241.20.

25 Purchase in advance - 20 vouchers Nil Nil 1 April 2012 No proposed increase. The current charge is £428.80

Pitch& Changing Facilities Vouchers 1 April 201226 Purchase in advance - 10 vouchers(10%

discount)Nil Nil 1 April 2012 No proposed increase. The current charge is £342.

27 Purchase in advance - 20 vouchers (15%discount)


Page 85 of 110

APPENDIX 9 (c)


£


Pitch only -Vouchers 1 April 201228 Purchase in advance - 10 vouchers(10%

discount)Nil Nil 1 April 2012 No proposed increase. The current charge is £184.50.

29 Purchase in advance - 20 vouchers (15%discount)


Golf - Pay as you play30 Adult - 12 holes 0.50 14.29 1 April 2012 Proposed new charge is £4.80.31 Juniors & OAP 12 holes Nil Nil See comment No proposed increase. The current charge is £2.50.

32 Lost Balls 0.05 3.23 1 April 2012 Proposed new charge is £1.60.33 Floodlit Kickabout Areas 2.00 8.70 1 April 2012 Proposed new charge is £25.34 Deckchair Hire Nil Nil See comment No proposed increase. The current charge is £3.50.

35 Hire of Bowls Pavilion 6.00 31.58 1 April 2012 Proposed new charge is £25.

Page 86 of 110

APPENDIX 10

Service Area Budgets

2011/12 Adjusted Base

Inflation & Commitments Savings Total 2012/13

£000 £000 £000 £000

Adult Services 81,157 2,907 (2,414) 81,650Children's Services 40,164 2,784 (468) 42,480City Development 7,462 612 (537) 7,537City Management 29,504 700 (1,350) 28,854City Services 33,716 3,367 (2,836) 34,247Communities 26,366 1,239 (1,880) 25,725Corporate Management 26,993 3,383 (340) 30,036Corporate Services 13,264 1,029 (701) 13,592Education 222,214 5,058 (961) 226,311Shared Services 18,992 1,541 (2,892) 17,641

Capital Financing etc 34,408 3,150 37,558

Total Service Expenditure 534,240 25,770 (14,379) 545,631

Page 87 of 110

APPENDIX 11Housing Revenue Account Estimates 2012/13

2012/13

Estimate

£000

Employees 9,890Premises Council House Repairs 12,412

Other Premises Costs 5,704Transport 186Supplies & Services 2,158Third Party Payments 61Subsidy (Net Payment to WG) 15,875Support Services 5,428Capital Financing 10,418Contribution to Funds 666

Gross Expenditure 62,798

Rents (54,699) Interest On Sale of Council Houses (10)

On Balances (92) Other Income (4,942) Recharges (3,055)

Total Income (62,798)

Net Position 0

Page 88 of 110

APPENDIX 12

ProjectedEstimated Movements 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

£000 £000 £000 £000 £000 £000 £000 £000

Estimated Balance B/Fwd 11,131 9,191 9,031 8,728 7,684 3,022 2,271 1,688

Contributions to ReserveRevenue Release Savings: 6,203 7,024 7,740 8,182 8,485 8,485 8,485 8,485

Drawdown From ReserveOrganisational Restructuring (4,451) (2,305) (1,771) (2,325) (5,883) (1,800) (1,625) (1,500)

* Capital Financing Requirement (1,913) (3,100) (4,493) (5,122) (5,485) (5,657) (5,664) (5,680)

** Direct Revenue Financing (1,779) (1,779) (1,779) (1,779) (1,779) (1,779) (1,779) (1,779)

Total Drawdown from Reserve (8,143) (7,184) (8,043) (9,226) (13,147) (9,236) (9,068) (8,959)

Estimated Balance C/Fwd 9,191 9,031 8,728 7,684 3,022 2,271 1,688 1,214

Movement on Reserve (1,940) (160) (303) (1,044) (4,662) (751) (583) (474)

* These amounts are to be used to pay the borrowing costs of the capital schemes as set out in the Capital Programme.** Direct Revenue Financing will be used if available to fund capital expenditure in year

SCHOOL ORGANISATION PLAN RESERVE

Page 89 of 110

APPENDIX 13Parking Reserve Projections 2011/12 to 2014/15

2011/12 2012/13 2013/14 2014/15£000s £000s £000s £000s

(1,761) Parking Account Balance 1 April (773) (626) (942)

Income(2,872) Pay & Display (4,074) (4,234) (4,234)

(139) Residents Parking Permits (139) (139) (139) (240) Off Street Car Parks (240) (240) (240) (14) Disabled Bays - WG Grant (46) (46) (46)

(1,898) Enforcement Fines (2,027) (2,032) (2,032)

(5,163) Total Income (6,526) (6,691) (6,691)

Expenditure938 TRO Staff and Operational Costs 867 864 881

2,692 Enforcement Service 2,746 2,776 2,832

3,630 Total Expenditure 3,613 3,640 3,713

(1,533) CPE Annual (Surplus) / Deficit (2,913) (3,051) (2,978)

(3,294) Revised Balance after (Surplus) / Deficit (3,686) (3,677) (3,920)

Commitments1,641 Contribution to overall provision for Transportatio 2,225 2,225 2,225

435 Pentwyn Park & Ride Subsidy 450 450 450 325 Surface Car Park Upgrades 325 0 0 60 City Centre Mobility Assistance 60 60 60 60 Project Costs 0 0 0

2,521 3,060 2,735 2,735

(773) Estimated Balance at 31 March (626) (942) (1,185)

Page 90 of 110

APPENDIX 14Capital Resources 2012/13 - 2016/17

Indicative Indicative Indicative Indicative2012/13 2013/14 2014/15 2015/16 2016/17

£000 £000 £000 £000 £000

Unhypothecated Supported Borrowing (10,389) (8,574) (8,574) (8,574) (8,574)General Capital Grant (5,259) (5,251) (5,251) (5,251) (5,251)Additional Borrowing to cover estimated slippage from 2011/12 (8,400)Additional Borrowing to Balance Capital Programme (12,597) (16,488) (10,186) (2,235) 1,465General Fund Capital Receipt Assumptions (2,400) (1,800) (1,750) (1,750) (1,750)Vehicle Maintenance Depot - Earmarked receipts (500) (250)Direct Revenue Financing - Buildings Maintenance Support (210) (190) (190) (190) (190)Direct Revenue Financing - Neighbourhood Renewal Schemes (350) (350) (350) (350) (350)Bereavement Reserve (170) (200) (200) (200) (200)Parking Reserve for Car Park Upgrades (325)Central Business District Phase 1 - Reserve (6,500) (9,000) (1,500)Insurance Risk Management match funding for footpaths (250) (250) (250) (250) (250)Community Infrastructure Levy (1,000) (2,500)Total funded from identified General Fund resources (47,350) (42,353) (28,251) (19,800) (17,600)

External Funding Estimates and Contributions (30,033) (25,940) (41,728) (32,138) (19,977)

Invest to Save Schemes - Additional borrowing to be repaid from specific resources

(35,416) (25,444) (16,025) (19,272) (3,826)

Total General Fund (112,799) (93,737) (86,004) (71,210) (41,403)

Public Housing ResourcesAdditional Borrowing to balance programme 0 (1,900) (4,900) (6,900) (6,900)Major Repair Allowance (9,600) (9,600) (9,600) (9,600) (9,600)Direct Revenue Financing (2,206) (2,600) (2,200) (2,000) (2,000)Housing Revenue Account (HRA) Reserve 0 (1,000) (1,000) (1,000) (1,000)Capital Receipts (100) (100) (100) (100) (100)Earmarked HRA Reserves (1,129)

Total Public Housing (13,035) (15,200) (17,800) (19,600) (19,600)

Total Capital Programme Resources Required (125,834) (108,937) (103,804) (90,810) (61,003)

Page 91 of 110

APPENDIX 15

Capital Programme 2012/13 - 2016/17Indicative Indicative Indicative Indicative

2012/13 2013/14 2014/15 2015/16 2016/17£000 £000 £000 £000 £000

No. Annual Sum Expenditure1 Disabled Facilities Grants To provide adaptations and associated improvements to

the homes of disabled persons3,100 3,100 3,100 3,100 3,100

2 Private Sector Housing (Criteria Restricted) Renewal area and discretionary services to the elderly to ensure they remain safely at home under the Regulatory Reform Policy

400 400 400 300 300

3 Private Housing Group Repair A rolling programme with a coordinated approach to improving the City's oldest and worst condition housing stock focusing on energy efficiency

150 150 150 150 150

4 Property Asset Renewal :- All Council Buildings To address the condition of the property stock within the Council in accordance with service area asset management plans and priority works

4,130 3,750 4,000 4,000 4,000

5 Strategic Property - 'Our Space' Contribution Strategic property and accommodation rationalisation 1,585 1,0006 Legionella Capital Works Capital works arising from legionnaires surveys 1007 Asset Renewal Supervision Support Building Maintenance Group fees on property asset

renewal schemes (Capped)210 190 190 190 190

8 Highway Infrastructure Environmental Improvements, Highway & Footway asset renewal

1,360 1,360 1,360 2,110 2,110

Highway Structures such as bridges and culverts 550 635 550 840 960Insurance Reserve for footways renewal 250 250 250 250 250Lighting renewals 400 400 300 300 300Flood prevention schemes - Match funding (Whitchurch Brook)

50 200

Sign renewal and upgrade 30 30 30 30 309 Traffic Management and Public Transport Strategic and local network improvements including

junction and pedestrian safety improvements, with a focus on securing match funding

600 600 600 750 750

10 Telematics / Butetown Tunnel To undertake a long term programme of infrastructure replacements required for the ongoing operation of the tunnel and transportation infrastructure

400 400 375 375 375

11 Strategic Cycle Network Development Implementation and match funding of cycling strategy 500 450 450 450 45012 Parks Infrastructure To improve existing parks infrastructure (Drainage,

footpaths etc)140 140 140 140 140

13 Play Equipment Replacement of existing play equipment in parks 105 100 100 100 10014 Bereavement Strategy Improvement of facilities at Thornhill Crematorium and

other bereavement infrastructure funded by reserves170 200 200 200 200

15 Neighbourhood Renewal Schemes City wide public realm and environmental improvement schemes

750 600 600 400 400

16 Community Shopping Centre Regeneration District and local shopping centre regeneration 400 400 400 400 40017 Housing Regeneration Schemes - Owner Occupier

CostsOwner occupier costs of improvements to houses, boundary walls etc

350 350 250 175 175

18 Community Building Grants A city-wide scheme promoting investment in community buildings

50 70 70 70 70

Page 92 of 110

APPENDIX 15


£000 £000 £000 £000 £00019 Heritage Enhancement Programme Schemes arising from conservation area appraisals and

historic buildings145 100 100 100 100

20 Alleygating To prevent anti-social behaviour with other benefits such as reduced street cleansing and highway maintenance costs

225 125 50 50 50

TOTAL ANNUAL SUMS 16,150 15,000 13,665 14,480 14,600

Ongoing Schemes21 Lamby Way Landfill Site Capping and Engineering To meet obligations as sections of the Lamby Way

Eastern extension are completed. Options may need to be considered in order to either defer or bring forward spend subject to leachate issues and timing of site closure

895 890 890 890 500

22 Leisure Centre Refurbishment The redevelopment of Eastern, Fairwater and other Leisure Centres

495 4,250 1,841

23 Bute Park Restoration Provision to cover a shortfall in resources allowing completion of the restoration scheme

1,370 135

24 Schools Organisation Plan Contribution Council contribution to support the costs of the Schools Organisation Plan in addition to the contributions from revenue release savings from Schools, grants and capital receipts

4,400 2,933 2,400 2,000 2,000

25 Western Cemetery Extension To extend burial space in the City 55026 Maelfa Centre Council contribution to determine a new approach to the

regeneration of the Maelfa Centre60 450 685

27 Central Business District Phase 1 (Council GCF) 5,000 2,000 500

28 Central Business District Phase 1 (Reserve) 6,500 9,000 1,500

29 Library Investment Completion of Radyr library and Improvements at Canton library arising from the review of library services

660 150

30 Capital Cardiff Fund Support for SME's in the form of equity and loans 500 250

31 Surface Car Park Upgrades Upgrade surface car parks in the City subject to sufficient resources in the Parking Reserve

325

32 New Vehicle Maintenance Depot Relocation and disposal of existing council depot sites and construction of a new facility at Brindley Road

3,600 705

33 Tourism Development - Cardiff Museum Completion of phase 1 and match funding for a second phase of the Cardiff Museum, to include new exhibition space and construction of a bar/café

430 150

34 New Theatre - Disabled Access Completion Provision of a lift to facilitate disabled access 180

A range of schemes including transport interchange improvements, public realm and other sustainable travel improvements. Aims to create economic regeneration and bring growth and new jobs to the city and region and other benefits to citizens, business and visitors

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£000 £000 £000 £000 £00035 Parc Cefn Onn As part of the Council's Parks Partnership Programme,

restoration of the Parc Cefn Onn Summer house as an interpretation centre; repair and restoration of historic bridges, ponds and watercourses. Subject to discussions with the Heritage Lottery Fund for match funding

0 20 120

36 Household Waste Recycling Centres Proposals in accordance with the Waste Management Strategy

0 100 1,000 400

TOTAL ONGOING SCHEMES 24,965 21,033 8,936 3,290 2,500

New Capital Schemes (Excluding Invest to Save)37 Cardiff Innovation Centre Redevelopment To redevelop Cardiff Business & Technology Centre into

an Innovation Centre in partnership with Welsh Government and the University.

200 500 4,100 200

38 Citizen Hubs Development of Citizen Hubs, in particular a City Centre Hub

750 1,500 750

39 Penarth Learning Community Contribution to the Vale of Glamorgan Council for special education needs and residential respite places

1,330

40 Sports Development Development of Sporting hubs and other infrastructure within the City

500 500

41 Llanedeyrn Interchange Ph II Second phase of safety improvements to the Interchange 100 550

42 Enterprise Architecture Investment in technology: Software and applications; Infrastructure; Consulting, and Systems Integration. It covers essential and additional architecture, allowing the Council to meet the transformation programme and improve service delivery

4,440 3,110 800

43 ICT Refresh To replace old and obsolete ICT equipment including servers and other essential hardware

620 400

44 Cardiff Museum Phase 2 Additional match funding for a second phase of the Cardiff Museum, to include new exhibition space and construction of a bar/café

0 260

45 Maintenance of public realm City centre cleansing equipment 125TOTAL NEW SCHEMES TO BE PAID FOR FROM ADDITIONAL BORROWING 6,235 6,320 5,650 2,030 500

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£000 £000 £000 £000 £000

Schemes funded by Grants and Contributions (subject to approval of bids)46 Sustainable Travel Centre Grant (Welsh

Government)A range of sustainable travel schemes subject to bids 1,500 1,500

47 Regional Transport Plan - South East Wales Transport Alliance (SEWTA)

Subject to outcome of bids - Including Transport Interchange, Bus Corridors, Walking, Cycling and other Strategic Transport schemes

1,500 1,500 1,500 1,500 1,500

48 Local Road Safety Grant (Welsh Government) To support the achievement of targets for road safety casualty reduction

400 400 400 400 400

49 Transport Grant (Welsh Government) Safe routes in communities 250 250 250 250 25050 Transport Grant (Welsh Government) A range of schemes as part of Central Business District

Phase 1, including transport interchange, road network improvements and other sustainable travel improvements

0 2,000 2,000

51 Flood Alleviation Grant (ERDF and Welsh Government)

Flood alleviation measures at Whitchurch Brook 200 1,200

52 Renewal Area Grant (Welsh Government) To progress the West Adamsdown/North Grangetown renewal areas

945 750 750 750 750

53 Butetown Regeneration (ERDF and Welsh Government)

Butetown Youth Pavilion and Community Centre rebuild, public realm and environmental Improvements

2,950 95

54 Cymru Museum Archives and Libraries (CYMAL) Bid for improvements to libraries 100 80 70 70 7055 Travellers Site Improvements (Welsh Government) To improve facilities at Travellers sites 350 300 300 250 200

56 Bute Park Restoration Bute Park restoration (Heritage Lottery Fund, CADW and other grants )

941 84

57 Harbour Authority Grant (Welsh Government) Asset Renewal

Approved asset renewal programme 570 495 500 500 500

58 Harbour Authority Flow Rider Construction of the Flow Rider from the Project and Contingency fund

1,600 400

59 21st Century schools Welsh Government Band A grant funding for a variety of schemes to improve school facilities and infrastructure in Cardiff - Subject to approval of individual business cases

0 26,878 28,418 16,307

60 Flying Start Support for early years education facilities across Cardiff 300 300

61 Transitional Schools Building Improvement Grant (Welsh Government - 3rd Tranche)

New build St Teilos school at Llanedeyrn and capital investment in Cardiff High School, Llanishen High School and the Welsh Medium school at the St Teilos site

13,100 14,756 7,700

62 Schemes funded by existing Planning Gain (S106) and other contributions

Various schemes such as improvements to open space, transportation, public realm, affordable housing and community facilities

5,327 1,830 1,380

30,033 25,940 41,728 32,138 19,977TOTAL SCHEMES FUNDED BY GRANTS AND CONTRIBUTIONS (SUBJECT TO APPROVAL OF BIDS)

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£000 £000 £000 £000 £000

63 Our Space - Office Accommodation Review Rationalisation of office accommodation the Council uses in order to undertake essential investment in remaining buildings such as County Hall

2,375 6,420 4,080 (2,985)

64 Central Business District Phase II Development of an International Conference Centre working together with a range of external partners

0 15,000

65 Local Authority Mortgage Scheme (LAMS) Deposit required with financial institution in order to implement the requirements of the LAMS scheme

1,000

66 Wind Turbine Renewable Energy Initiative Construction of a wind turbine on the coast of the Lamby Way landfill site in order to generate renewable energy

100 1,480

67 Solar PV Renewable Energy Initiative To undertake the construction of solar pv panels on selected Council buildings in order to generate renewable energy

250 825

68 Schools Energy Efficiency Conversion of school boilers from oil to gas 59069 Schools ICT Investment in Schools ICT infrastructure and equipment 500 2,500 1,000

70 Hydro Power Renewable Energy Initiative Radyr Weir facility to be operated by the Council or a private company. Depending on the preferred option, an income would be generated by supplying power to a provider or directly to a neighbouring user.

240 1,200

71 School Organisation Plan Strategic investment programme to be paid back from revenue release savings and capital receipts

27,206 12,479 10,445 6,757 3,326

72 New Vehicle Maintenance Depot Relocation and disposal of existing council depot sites and construction of new facility at Brindley Road

600

73 New Theatre - Upper Circle Seating Improvements to seating in the Upper Circle which dates back to 1906, to improve comfort, safety, better access, personal space and higher value experience. Scheme would also address fire safety concerns at the same time. Subject to a surcharge on ticket prices.

275

74 Single Assessment Centre To develop a single point of access for homelessness 660 4075 Autism Centre (Bishop of Llandaff) Centre for autism to provide specialist provision for pupils

in Cardiff1,120

76 Invest to Save - Annual bid allocation For capital schemes developed during the year that can pay back the original investment of the scheme either through income generation or savings within a short period of time

500 500 500 500 500

35,416 25,444 16,025 19,272 3,826

TOTAL GENERAL FUND 112,799 93,737 86,004 71,210 41,403

TOTAL ADDITIONAL BORROWING TO BE REPAID FROM SPECIFIC RESOURCES

Additional borrowing undertaken by the Council to be repaid from specific resources (Invest to Save - Subject to Business Case)

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£000 £000 £000 £000 £000

Public Housing77 Regeneration and Area Improvement Strategies Environmental works including defensible space,

demolition, conversion, new build and road/footpath realignment. Improvements to flats, health and safety, garages, gullies and open spaces

1,750 3,800 3,900 4,650 4,650

78 Planned Elemental works, Dwellings & Other HRA property

Improvements include central heating, rewiring, door entry systems, external improvements and kitchen and bathroom upgrades

8,332 4,182 4,114 3,364 3,364

79 Partnering - New Build Council Housing New build housing across Cardiff funded from partnering receipts and additional borrowing

0 5,000 8,000 10,000 10,000

80 Disabled Adaptations and Accommodation Strategyfor Social Care Needs

To provide adaptations and associated improvements to the homes of disabled persons

1,618 1,618 1,586 1,586 1,586

81 Enterprise Architecture HRA Contribution HRA contribution towards investment in technology to allow the council to meet the transformation programme and improve service delivery

1,100 600 200 0 0

82 Ourspace - Office Accomodation Review Contribution to buildings maintenance and accommodation improvements

235

TOTAL PUBLIC HOUSING 13,035 15,200 17,800 19,600 19,600

TOTAL CAPITAL PROGRAMME EXPENDITURE

125,834 108,937 103,804 90,810 61,003

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APPENDIX 16 (a)

Glossary of Terms - General Association of Accounting Technicians – (AAT) AAT is a UK qualification and membership body for accounting staff. AAT award around 90% of all vocational qualifications in accounting, and are sponsored by the professional accounting bodies CIPFA, ICAEW, CIMA and ICAS. AAT members include students and people working in accountancy. Aggregate External Finance – (AEF) This is the total central support for local authorities revenue expenditure not funded from Council Tax. It comprises the Revenue Support Grant and redistributed National Non-Domestic Rates. Capital Expenditure Capital expenditure pays for new assets and for improvements to existing assets used in the delivery of Council services. The statutory definition of capital expenditure is given in the Local Government Act 2003 and the Local Authorities (Capital Finance) Regulations 2003 and 2004 amended. The statutory definition relies on the accounting measurement of cost to determine whether expenditure is eligible to be capitalised or whether it should be treated as revenue expenditure. Key to what is eligible as capital expenditure is the following ‘Costs directly attributable to bringing the specific asset into working condition for its intended use’. Capital Financing Requirement – (CFR) An authority’s underlying need to borrow for a capital purpose. It measures capital expenditure incurred but not yet financed by the receipt of grants, contributions and charges to the revenue account. Capital Programme The Capital Programme sets out the Council’s capital expenditure plans for the forthcoming financial year as well as for the medium term. It is approved annually at Council and identifies the estimated cost of those schemes, their projected phasing over financial years as well as the method of funding such expenditure. Community Infrastructure Levy – (CIL) The Community Infrastructure Levy (CIL) allows local authorities to raise funds from developers undertaking new building projects in their area. Chartered Institute of Public Finance & Accountancy – (CIPFA) CIPFA is the professional body for accountants in public finance. As the world’s only specialised public services accountancy body, they provide information,

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guidance, and determine accounting standards and reporting standards to be followed by Local Government. Civil Parking Enforcement – (CPE) A responsibility granted by WAG designating Cardiff as a “Civil Enforcement Area”. This gives the Council direct control over the deployment of enforcement staff across the highway network, allowing enforcement to be targeted more effectively to local needs and transportation strategies. Comprehensive Spending Review – (CSR) A Treasury-led process that allocates resources across all government departments, according to government priorities. Comprehensive Spending Reviews also examine non-departmental spending that cannot be firmly fixed over the period, including social security, tax credits, and some elements of local authority spending. Direct Revenue Financing – (DRF) Direct Revenue Financing (DRF) is the amount of revenue funding used to pay directly for capital expenditure incurred. Earmarked Reserves Amounts set aside from the General Balance to fund a future specific purpose or requirement. This is done in accordance with CIPFA guidance (LAAP 77). General Fund Balance The General Fund Balance represents the cumulative retained surpluses on the Council’s revenue budget. It provides a working balance which can be used to cushion the Council against unexpected events or emergencies. It is reviewed annually to ensure it remains at an appropriate level. Housing Revenue Account – (HRA) The HRA is an account of expenditure and income that every local authority housing department must keep in accordance with the Local Government & Housing Act 1989. The account is kept separate or ring fenced from other Council activities. Income is primarily generated by the rents and service charges paid by tenants, while expenditure is on the management and maintenance of the housing stock, and capital financing charges on the HRA’s outstanding loan debt. Indicator Based Assessments – (IBA) Indicator-Based Assessments form part of the calculation of Standard Spending Assessments, which feed in to the calculation of the Revenue Support Grant. Indicator-Based Assessments are used to break the SSA into service categories,

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APPENDIX 16 (a)

although these are not spending targets, as local authorities retain the power to set their own spending priorities. Initial Development Appraisals – (IDA) Initial Development Appraisals are ‘Desktop’ only exercises with outline requirements broadly set against the recommendations of Building Bulletins 98 and 99 relating to primary and secondary school projects respectively. These appraisals are carried out in advance of detailed feasibility studies, which only become necessary when further consideration of a proposal, and a subsequent decision, is required. Local Development Plan – (LDP) Under Welsh Assembly Government legislation, each local authority in Wales is required to produce a Local Development Plan. This document will outline policies and proposals for the development and use of land within their area, which can be referred to by planning committees when considering future planning applications. Minimum Revenue Provision – (MRP) This is the amount which must be charged to the authority’s revenue account each year and set aside as provision for repaying external loans and meeting other credit liabilities. The prudent amount is determined in accordance with guidance issued by WAG. Medium Term Financial Plan – (MTFP) The Medium Term Financial Plan covers a three year period and forms part of the Council’s corporate planning processes. The MTFP aims to identify financial and funding pressures facing the Council over the forthcoming three years that will lead the future budget setting process, outline the Council’s budget position for the next three years, and set out future levels of Government funding. Non-Domestic Rates – (NDR) A levy on businesses collected by billing authorities, on behalf of the Welsh Government, and paid into an All Wales Pool. The Pool is then redistributed amongst all Welsh authorities on the basis of population. Revenue Support Grant – (RSG) A grant paid by central government to aid local authority services in general (as opposed to specific grants for specified purposes). The grant makes up the difference between expenditure at Standard Spending Assessment, and the sum of a) the amount the authority would collect if council tax was set at the government’s standard level and b) redistributed National Non-Domestic Rates.

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School Buildings Improvement Grant – (SBIG) The Schools Building Improvement Grant is capital funding from the Welsh Government which is allocated to local education authorities in Wales. This funding can be used by authorities for new school facilities, for refurbishment and improvement projects, and for fire prevention and disability access works. Schools Organisational Plan – (SOP) The School Organisational Plan is a significant programme of capital investment which aims to reduce the number of surplus school places in Cardiff, whilst recognising the increasing demand for Welsh medium education. It will ensure that resources are used more effectively and that 21st century schools are fit for purpose. Standard Spending Assessment – (SSA) The amount of revenue expenditure, net of specific grants, considered appropriate for each local authority to spend to provide a standard level of service at a common rate of Council Tax. SSAs are a mechanism for distributing resources and local authorities have the flexibility to set their own spending priorities and vary the level of services provided, therefore actual budgets may be above or below the SSA. Section 106 Contributions – (S106) An agreement, between a council and a developer, whereby it is necessary to provide contributions to offset negative impacts caused by construction and development. The developer will either implement specified measures or make payments to the Council for them to be carried out. Tax Increment Finance – (TIF) Tax Increment Finance is a financing mechanism that enables local authorities to pay for large scale infrastructure improvements by raising debt finance that is paid for by the property tax (i.e. Business Rates and Council Tax) revenue generated by that improvement. Welsh Government – (WG) The Welsh Government’s responsibilities include decision making on matters which affect people's daily lives, developing and implementing policy, making subordinate legislation (e.g. regulations and statutory guidance), and proposing Measures (Welsh laws). WG provide a major source of grant funding for the Council. Welsh Housing Quality Standard – (WHQS) The Welsh Housing Quality Standard exists to ensure that tenants in public housing in Wales have the opportunity to live in a good quality home within a safe

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APPENDIX 16 (a)

and secure community. To help achieve this, the physical standard and condition of existing housing must be maintained and improved. The current requirement is for the standard to be achieved by 2012.

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APPENDIX 16(b) Prudential Indicators The Prudential Code

The current system of capital finance is CIPFA’s Prudential Code. It is a professional Code of practice to support the decisions local authorities have to make to plan for capital investment at a local level. Authorities are required by regulation to have regard to the Prudential Code when carrying out their duties under Part I of the Local Government Act 2003 (Part 7 of the Local Government in Scotland Act 2003) i.e compliance with the Code is a Statutory Requirement. Objectives of the Code

The key objectives of the Code are:-

• To ensure within a clear framework that capital expenditure plans are affordable, prudent and sustainable

• That Treasury Management decisions are taken in accordance with good professional practice

• That local strategic planning, asset management planning and proper option appraisal are supported

• To provide a clear and transparent framework to ensure accountability Prudential Indicators The indicators required are shown below, with further explanation as to their meaning: 1(a). External Debt - Operational Boundary

The most likely, prudent view of the level of gross external indebtedness. External debt includes both borrowing and long term liabilities (e.g. finance leases), with separate boundaries having to be identified for each of these. It encompasses all borrowing, whether for capital or revenue purposes.

1(b). External Debt - The Authorised Limit

The upper limit on the level of gross external indebtedness, which must not be breached without Council approval. It is the worst-case scenario. It reflects the level of borrowing which, while not desired, could be afforded but may not be sustainable. Any breach must be reported to the executive decision making body, indicating the reason for the breach and the corrective action undertaken or required to be taken.

1(c). External Debt - Actual External Debt

The indicator for actual external debt will not be directly comparable to the operational boundary and authorised limit, since the actual

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APPENDIX 16(b) external debt will reflect the actual position at one point in time.

2 Financing cost to Net Revenue Stream

The percentage of revenue budget set aside each year to service debt financing costs

3. Capital Financing Requirement (CFR)

The Capital Financing requirement (CFR) replaced the ‘Credit Ceiling’ measure of the 1989, Local Government and Housing Act. It measures an authority’s underlying need to borrow or finance by other long-term liabilities, for a capital purpose.

4. Capital Expenditure

The level of capital expenditure incurred and likely to be incurred in future years. This is to be based on an accruals basis and on the definition of capital expenditure.

5. Incremental impact of Capital Investment decisions on Council Tax / Average weekly Housing Rents

This shows the impact of new capital investment decisions on the Council Tax and average weekly rent for HRA.

6. Net External Borrowing and the Capital Financing Requirement

Net external borrowing is defined as external borrowing less investments. The Capital Financing Requirement represents the underlying need to borrow. Requires that borrowing in the medium term be only for capital purposes.

7. Adoption of CIPFA’s Treasury Management Code of Practice

CIPFA’s Code of Practice for Treasury Management in the Public Services (the CIPFA Code) primary aim is to ensure that public services manage and control the risks attached to its treasury functions in an efficient effective and economic manner.

Accordingly the adoption of the Code has been encapsulated in Local Authorities (Capital Finance and Accounting) Regulations that call for explicit compliance with the CIPFA Code.

8. Interest Rate Exposures

Recognition of the impact of changes in interest rates as well as the need to ensure that local authorities maintain flexibility in their treasury strategy has resulted in the adoption of an interest rate exposure indicator. This indicator sets out for the following three years an upper limit for both fixed rate and variable rate exposure. Whilst the limits may be expressed in either percentage or principal amounts, the calculation is

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APPENDIX 16(b) based on the net position i.e. offsetting borrowing and investments. .

9. Maturity Structure of Borrowing

Local Authority debt portfolios consist of a number of loans with differing maturities.

10. Principal sums invested for greater than 364 days

This indicator measures the exposure of a local authority to investing for periods of greater than one year.

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APPENDIX 16(c)

Glossary of Terms - Treasury Bank Rate The rate of interest set by the Bank of England as a benchmark rate for British banks. Bonds A long-term debt security issued by a company, a financial institution, a local authority, national government or its affiliated agencies. It represents an undertaking to repay the holder the fixed amount of the principal on the maturity date plus a specified rate of interest payable either on a regular basis during the bond’s life (coupon) or as an accumulated and reinvested amount at maturity (zero-coupon bonds). Borrowing Loans taken out taken out by the authority to pay for capital expenditure or for the prudent management of the Council’s financial affairs, which are repayable with interest. Callable Deposits A bank deposit that can be redeemed prior to the scheduled maturity. These deposits, often with long maturities, are traded in the secondary market and can fluctuate in value with changes in market rates of interest. Capital Market A market for securities (debt or equity), where companies and governments can raise long-term funds (periods greater than one year). The raising of short-term funds takes place on other markets (e.g. the money market). Certificates of Deposits (CDs) A certificate issued for deposits made at a deposit-taking institution (generally a bank). The bank agrees to pay a fixed interest rate for the specified period of time, and repays the principal at maturity. CDs can be purchased directly from the banking institution or through a securities broker. An active interbank secondary market exists to buy and sell CDs. Collective Investment Scheme Structures Schemes whereby monies from a number of investors are pooled and invested as one portfolio in accordance with pre-determined objectives. Commercial Paper A relatively low risk, short-term and unsecured promissory note traded on money markets issued by companies or other entities to finance their short-term cash requirements. Corporate Bonds Bonds that are issued by a company or other non-government issuers. They represent a form of corporate debt finance and are an alternative means of raising new capital other than equity finance or bank lending.

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APPENDIX 16(c)

Counterparty One of the parties involved in a financial transaction. Credit Criteria The parameters used as a starting point in considering with whom the council may place investments, aimed at ensuring the security of the sums invested. Credit Default Swaps A financial transaction which the buyer transfers the credit risk related to a debt security to the seller, who receives a series of fees for assuming this risk. The level of fees reflect the perceived level of risk. Credit Rating A credit rating assesses the credit worthiness of an individual, corporation, or even a country. Credit ratings are calculated from financial history and current assets and liabilities. Typically, a credit rating tells a lender or investor the probability of the subject being able to pay back a loan. Ratings usually consist of a long term, short term, viability and support indicators. The Fitch credit rating of F1 used by the Council is designated as “Highest Credit quality” and indicates the strongest capacity for timely payment of financial commitments. Debt Management Account Deposit Facility (DMADF) The Debt Management Office provides this service as part of its cash management operations and of a wider series of measures designed to improve local and central government’s investment framework and cash management. The key objective of the DMADF is to provide users with a flexible and secure facility to supplement their existing range of investment options while saving interest costs for central government. Debt Restructuring Debt restructuring is a process that allows an organisation to reduce, renegotiate and undertake replacement debt. Diversification of Investments The process of creating a portfolio of different types of financial instruments with regard to type, price, risk issuer, maturity, etc. in order to reduce the overall risk of the portfolio as a whole. Duration (Maturity) The length of time between the issue of a security and the date on which it becomes payable. External Borrowing Money borrowed from outside of the Council. Financial Instrument Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another. Typical financial liabilities are

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APPENDIX 16(c)

borrowing and financial guarantees. Typical financial assets include bank deposits, amounts owed by customers, loans receivable and investments. Fitch Credit Ratings A commercial organisation providing an opinion on the relative ability of an entity to meet financial commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty obligations. The opinion is usually provided in the form of a credit rating. Fixed Rate An interest rate that does not change over the life of a loan or other form of credit. Floating Rate Notes A money market security paying a floating or variable interest rate, which may incorporate a minimum or floor. Internal Borrowing Money borrowed from within the Council, sourced from temporary internal cash balances. Investments The purchase of financial assets in order to receive income and/or make capital gain at a future time, however with the prime concern being security of the initial sum invested. Lender Option Borrower Option Loans (LOBOs) Loans to the Council where the lender can request a change in the rate of interest payable by the Council at pre-defined dates and intervals. The council at this point has the option to repay the loan. Liquidity The ability of the Council to meet its financial obligations as they fall due. Market Loans Borrowing that is sourced from the market i.e. organisations other than the Public Works Loan Board or a Public Body. Money Market The market for short-term securities or investments, such as certificates of deposit, commercial paper or treasury bills, with maturities of up to one year. Money Market Funds An investment fund which pools the investments of numerous depositors, spreading those investments over a number of different products and counterparties. Multilateral Development Banks (MDB) A multilateral development bank is an institution, created by a group of countries that provides financing and professional advice for the purpose of

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APPENDIX 16(c)

development. MDBs have large memberships including both developed donor countries and developing borrower countries. Prudential Code for Capital Finance The system introduced on 1 April 2004 by Part 1 of the Local Government Act 2003 which allows local authorities to borrow without Government consent, provided that they can afford to service the debt from their own resources and that any such borrowing is prudent and sustainable. This requires the preparation and approval of various indicators. Public Works Loans Board (PWLB) The Public Works Loans Board is a statutory body operating within the United Kingdom Debt Management Office, an Executive Agency of HM Treasury. PWLB’s function is to lend money from the National Loans Fund to local authorities and other prescribed bodies, and to collect the repayments. Range Accrual A range accrual is a structured investment product in which the coupon rate is only earned on days when another rate from which the coupon is derived falls within a specified range. Secondary Market A market for the trading of financial instruments that have previously been brought by investors in the primary market. Security Protecting investments from the risk of significant loss, either from a fall in value or from default of a counterparty. Sovereign Credit Ratings The credit rating of a country. It indicates the risk level of the investing environment of a country, taking into account political risk and other factors. Specified Investments A term defined in WG investment regulations, referring to any investments for less than one year, in sterling, and where the principal sum to be repaid at maturity is the same as the principal sum invested. An investment not meeting the above criteria would be termed a Non-specified investment Sterling The monetary unit of the United Kingdom (the British pound). Term Deposits A term deposit is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time. Treasury Bills Debt securities issued by a government with a short-term maturity of upto 6 months.

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APPENDIX 16(c)

UK Government Gilts Fixed-interest debt securities issued or secured by the British Government. Gilts are always denominated in sterling though the Government occasionally also issues instruments in other currencies in the Eurobond market or elsewhere. Variable Rate An interest rate that changes periodically in line with market rates. Yield The annual rate of return paid out on an investment in securities, expressed as a percentage of the current market price of the relevant securities.

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Documents

CARDIFF COUNCIL CYNGOR CAERDYDD COUNCIL: 23 FEBRUARY … · during the budget preparation period. Issues 19. The following sections of the report provide an update on the current