1. Mole Valley 2010/11 Budget

Councillor Ben TathamPortfolio Holder for Finance and Assets

2. Surrey Councils

3. MV District Council:• Refuse collection and recycling • 2 sports centres, 2 day centres, Dorking Halls • Planning Policy and Development Control• Building control, Environmental Health and Licensing• Housing and homelessness• Car parking• Street cleaning, graffiti, fly tipping and abandoned cars• Parks and playing fields• Local, National and European elections• Housing and Council Tax benefits - £18m per year • Collect Council Tax and Business Rates• Community alarm and Dial-a-ride

4. County council:

• Roads and verges

• Public Transport coordination and subsidy

• Education

• Social Care

• Libraries

• Fire and rescue service

5. The Whole of Mole Valley 2009/10allocation of Council Tax

£43.8million (76%) County Council

£7.8million (13%) Surrey Police

£6.2 million (11%) Mole Valley(including parishes)

£57.8 million

Surrey Council Tax 2009/10 - How MV Compares

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Mole Valley Band D £151.65

7. Business Rates

£35.7m collected in 2008/09 on behalf of central government

£3.5m or 9.8% redistributed back to Mole Valley

In 2008/09, only 44% of business rates collected in Surrey was redistributed back to Councils and the

Police

8. Income and Expenditure 2008/09

MVDC Total Spend: £30m

Funded by:

Capital Resources (£ 5m)

Service Income & Grants (£19m)

Net cost £ 6m

Funded by:

Council Tax £ 6m

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Revenue Expenditure 2009/10

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Fees &Charges

(36%)

Council Tax(27%)

GovernmentGrant (18%)

Balances(14%)

Interest (5%)

Mole Valley's Revenue Sources 2009/10

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11. Government Grant 2009/10 - Surrey CouncilsMole Valley£3.981m

12. Government Grant Per Head 2009/10

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Mole Valley£48.96

13. New factors increasing costs in 2010/11

£’000 pa

• Loss of car parking income 250

• General price inflation 132

• Increased take up, concessionary fares 120

• Increased energy costs 68

• Reduced Building & Development Control income 66

• Pensions back-funding 43

• Other Costs (Dorking Halls, Pippbrook House, phones) 52

• Loss of investment interest 571

Total 1,302

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2008/09 2009/10 2010/11 2011/12 2012/13

£'000

Interest

Govt Grant

Council Tax 5%

Expenditure (without savings)

Total income

14. The Solution (5% Council Tax increases)

Target Budget (with savings)

Reserves £4m

15. 2010/11 Revenue Budget Headlines

• Zero % Council Tax increase proposed

• 0.5% government grant increase

• Interest rates of 2.0% assumed

• £1.8m of reserves used to balance the budget

• Maintain minimum revenue reserves of £1.3m

16. 2009-2011 savings - headlines

2nd year of 3 year savings programme comprising:

• 2009/10 service savings of £0.6m pa

• 2009/10 Fees & Charges review - £0.4m pa

• 2010/11 Options Appraisals savings (on what we do) of £0.5m

• Property review - £0.2m pa by 2011/12

• Procurement initiatives - £0.22m pa by 2011/12

• Leisure Centre outsourcing - £0.4m pa by 2011/12

• Business Process Review Programme (how we do things) –

£1m pa saving by 2011/12, £2.3m investment

• In total, 3 year savings programme of over £3m

17. 2010/11 Options Appraisals

£000

•Community Transport – reduce 3 bus days 14

•Handyman – increase charges and charge for materials 5

•Gypsy sites – 3 more pitches 8

•Environmental Health – reduce animal wardens & pest control 46

•Housing – Church Gardens lease 14

•Food & Safety – reduce officer hours 6

•Training & equipment 8

•Parks & open spaces – reduced litter picks, change bedding displays 30

•Depot – rationalise following stock transfer 10

•Sustainability – reduced use of consultants 10

18. 2010/11 Options Appraisals (cont.)

£000

•Recycling – remove glass bring sites 20

•Street cleaning – reduce leaf clearing and reservation cleans 30

•Communications – reduce MV News issues & officer hours 50

•Leisure development – arts, sports & youth reductions 20

•Grants – reductions for leisure & community groups 20

•Leisure marketing / advertising – budget reduction 5

•Partnerships – budget reduction 5

•Financial Services – treasury management all in-house, reduce audit 36

•Estates – reduce bus shelter repair, charge for street names 17

•Committee Services & IT– cease webcasting 19

19. 2010/11 Options Appraisals (cont.)

£000

•Policy – reduce emergency planning budget 2

•Facilities – Reduced cleaning and plants 6

•HR – cease South East Employers membership 4

•Economic development – Reduce TCM and visitor information 57

•Building control – increase charges 10

•Conservation – reduce budget 20

•Development Control – misc. savings 13

Total 484

20. 2010/11 Capital Programme £8.7m budget, highlights of which are:• Remaining £3.7m on Leatherhead Leisure Centre• £1.3m Affordable Housing• £0.8m asset enhancement and renewal• £0.4m KGV playing fields, Holmwood• £0.4m Leatherhead Night Hostel• £0.4m Brockham Big Field football pavilion• £0.3m Food waste recycling• £0.15m property options appraisals

• Approximately £0.8m of ‘new’ additional capital funding added to the programme (none in 2009/10)

21. Future Financial Threats

• Pension Fund – value has fallen and there is a statutory duty to fully fund.

• Central Government Funding – regardless of the election result this will almost certainly be cut

22. Summary• The administration has improved the Council’s

budgetary position by over £3m circa 25% of net revenue budget

• Because of this and recognising the current economic difficulties of residents and communities, a zero council tax is intended to be set for 2010/11

• The future is difficult but the above demonstrates you can trust us with your money