Harlow District Council

1
Harlow District Council

• 2005 Budget Consultation Using SIMALTO Modelling

October - December 2004
2
Todays Agenda

• Kevin Brooks
• 1 Background to the 2005/6 Budget
• 2 Consultation Methodology
• Lorna Spenceley
• 3 Results of the Consultation
• 4 What Happens Next

3
Today is about being open

• to share with you the financial problems and
  challenges faced by the Council
• to share with you the results of our public
  consultation with residents about how to meet
  these challenges in next years budget

4
Background to the 2005/6 Budget
5
Government Inspection Report, April 2004

• Spending has increased to the point where
  (Harlow) is one of the highest spending councils
  in England..this is no longer sustainable.
• Current resources are spread too thinly and
  despite three years of trying the Council has
  been unable to identify clear priorities
• The failure to identify priorities and focus
  resources on those priorities is a serious
  failure.

6
Our Recovery Plan

• The Key Recovery Projects
• Prioritisation new corporate plan and priority
  led budget for 2005/6
• People Issues Management skills and capacity,
  and officer/member relationships
• Performance Management

7
Financial Pressures

• Need to re-allocate resources in accordance with
  strategic priorities rather than spread them too
  thinly to the detriment of service quality
• Specific budget pressures created by
• 350,000 - phased transfer of 3M (over 10
  years) back to the HRA
• 600,000 (at least) to close unspecified
  savings budget gap inherited from previous years
• 500,000 - Inflation (pay and cost increases)
• 200,000 - increased pension costs due to impact
  of stock market on pension fund valuations
• ? - growth needed to fund new Govt requirements
  and residents priorities

8
Financial Pressures Conclusion Need to Close
Budget Gap of approx 2M

• Options
• Increase Income - Council Tax already high and
  likely to be capped at 5
• Use reserves - but already near minimum levels
• Reduce Expenditure - impact on services

9
Reserves Now Near Minimum Levels
10
Public Consultation - Delivering Our Commitments

• Joint Administrations Joint Manifesto
• July 2004 made a commitment to consult the
  public on these difficult choices
• Harlow Council has a history of providing many
  services that are not legally required, but which
  contribute to residents quality of life. In
  consultation with local people we will identify
  and aim to secure those services which are most
  highly valued by the community.

11
The Consultation Methodology
12
Public Consultation Using SIMALTO Modelling
507 interviews were conducted in every ward,
proportional to its population.
13
Money is short - tell us what youd spend it on?
This is only part of the grid used for the
SIMALTO exercise and is for illustrative purposes
only
14
What Services Were Included

• Town Show / Bonfire
• Children /families
• Young people
• Leah Manning Centre
• Pools / leisure
• Concessionary fares
• Study centre
• Voluntary grants
• Informed
• Contact Harlow
• Car parking charges
• Town centre manage

• Shopmobility
• Recycling
• Bulky waste
• Street cleaning
• Parks / landscaping
• Pets corner
• Playhouse
• Museum
• Arts development
• Anti social behaviour
• Community partners
• Sumners centre

15
Results of the Consultation
16
Services which should not be reduced

• Anti social behaviour
• Recycling
• Street cleaning
• Town show / bonfire night
• Young people services
• Leah Manning Centre
• Pools / leisure centres
• Town centre management
• Shopmobility
• Parks / landscaping
• Playhouse

17
Benefit Reductions Causing Least Displeasure.

• Study centre Close
• Arts development Close service
• Community partnerships Cease
• Voluntary grants Halve (or cease)
• Sumners centre Close
• Museum reduce service
• Contact Harlow Close 2 points with no
  cashiering
• Car parking charges Introduce to all areas
• Concessionary Travel reduce subsidy
• Pets Corner - Charge for entry

18
Enhancements causing most Satisfaction

• Anti social behaviour Increase by 50
• Street cleaning Extend to broken glass
• Recycling Expand door-step collections

19
Council Tax Service Benefits/Tax Level Trade
Off ChoiceAfter making their choices based on
four separate levels of spend, residents were
informed what each choice would cost in terms of
Council Tax.
20
Having been informed of the cost of each of their
four choices, residents were asked which of the
four options they preferred.
Only 16 chose to reduce tax for a large net
reduction in services. However, residents opting
to pay more were of course only doing so for
their own choice of services.
21
Summary Information

• To maintain the current levels of service,
  council would have to save 2m in service
  budgets.
• Only 16 of residents opted for tax savings of
  12/year, knowing the large amount of service
  cuts this would mean.
• 53 opted for at least 10/year (4.6) increased
  tax to minimise service savings.

22
MORI Focus Group Some Key Messages

• Council provides some services well, eg leisure,
  recycling, street cleansing and community
  services
• Council falls down on corporate issues, eg
  infighting, inability to prioritise, competence
  and poor communication
• Key priorities should be the image of Harlow,
  reducing crime and fear of crime, regenerating
  the town, sound finances, working in partnership
  and improving customer services

23
What Happens Next?
24
What Happens Next

• Discussions within political groups and between
  political groups seeking consensus on 2005/6
  budget
• 4th Feb Policy Resources debates Corporate
  Plan, MTFS, and efficiency review
• 10th Feb Policy Resources debates 2005/6
  budget
• 17th Feb Full Council debates corporate plan,
  MTFS and 2005/6 budget

25
And What Happens After That?

• Other Recovery Projects Gather Pace
• Unit Cost/Efficiency Reviews
• Management skills and capacities gaps
• Member/Officer relationships
• Performance Management Framework