Agenda item

            (Mrs. J. Thompson, Director of Finance and Resources, attended in connection with this item.)

            The Committee considered a report which had been prepared by the Director of Finance and Resources in relation to the estimates of revenue expenditure for the year 2010/2011.  A copy of that section of the report, insofar as it applied specifically to the Health and Environmental Services Committee, is set out hereunder:

      “A spending limit of £43,057,644 is recommended for the Health and Environmental Services Committee in 2010/2011. This represents an increase of £444,816 or 1.04% over last year. The main items of expenditure of the department are set out within the attached appendix.

      The Environmental Health Service’s budget has increased by £62,820 representing an increase of 0.88% on 2009/10. This includes expenditure of £425,000 on the Good Morning Project which will be fully financed by external funding. The estimates also include the full cost of the City Wide 25 person Community Warden Service with an estimated net cost to the Environmental Health Service of £217,975 during 2010/11. As previously advised to Committee the estimates are based on the balance of funding required for the service being secured through external partners (estimated at £620,000 for 2010/11) and a successful bid of £100,000 from the Council’s Thematic Funding for 2010/11. It should be noted that if thematic funding was not available for 2010/11 then the planned Wardens Service would have to be curtailed unless specific growth to match the £100,000 was included in the Environmental Health Service revenue estimates.

      The Council will incur an additional £542,000 of Landfill Tax costs during 2010/11 due to the annual increase in the landfill tax rate of £8 per tonne announced by the Chancellor of the Exchequer in the March 2007 Budget. In-vessel composting costs for the treatment of food waste collected through the brown bins will also increase Waste Management costs by £121,000 during 2010/11. Despite these major increases, significant budget savings within the Waste Management Service have resulted in the overall increase in net expenditure for the Service being limited to £367,059. The savings include a reduction of £105,000 of landfill contract gate fees mainly due to the reduction in tonnages disposed of by landfill, £200,600 of reductions in operational costs at the Waste Transfer Station, £80,000 reduction in external services contracts for the Public Conveniences (PC’s) £50,000 of which relates to the savings in the tender for mobile security at PC’s and reductions of £137,000 of costs for Waste Education and Projects of which the major element is savings in advertising costs of the waste communication programme and a reduction in the scale of the Waste Week initiative.

      The impact of the economic downturn on the construction industry continues to have a major affect on the Building Control Service. Members will be aware of the range of initiatives which the Service has implemented to reduce the impact of the major reduction in Building Control income since June 2008. These have included undertaking the vacant rating project via a service level agreement with the Land and Property Service, the non filling of vacant posts which have arisen through staff turnover, the redeployment of staff within the Council so that vital skills are not lost, the agreement that the Council will be the provider of Energy Performance Certificate (EPC) regulation for Northern Ireland which will be fully funded by the Department of Finance and Personnel and the downsizing of the service following a review by the Council’s Business Improvement Section. Normal Building Control income is estimated to decrease by a further £626,250 during 2010/11 (excluding the additional £255,450 of EPC income). The increase in net expenditure for the Service has however been lessened due to reductions in staff costs of £242,600 based on the recommendations for the restructuring of the service as well as other anticipated staff turnover savings and a reduction of £43,527 in other external service costs. The net cost of the service will therefore increase from £661,263 in 2009/10 to £1,001,384 in 2010/11.

      The net cost of the Cleansing Services for 2010/11 is £15,461,721 which is a reduction of £314,046 or 1.99% on the 2009/10 budget. Overall income is estimated to increase by £382,230 with £366,920 of the increase relating to Commercial Waste charges necessary to recover the increased costs of disposal of commercial waste. The increase on employee related costs has been limited to £73,000 following a reduction in overtime of £71,440. Given the trend in fuel costs for Cleansing vehicles during 2009/10, the budget for fuel costs has been reduced by £363,200 on the 2009/10 estimate.

Recommendations

      Members are requested to note the contents of the report and agree the cash limit for the Health and Environmental Services Committee for 2010/11 of £43,057,644 and the proposed allocation of the resources therein.

            The Director of Finance and Resources outlined the factors which had been taken into consideration in the preparation of the estimates and highlighted the costs which had contributed to a Departmental increase of 1.04% from the previous year.  She informed the Members that, on 8th January, the Strategic Policy and Resources Committee had agreed that the cash limit for the Health and Environmental Services Committee should be set at £43,057,644.

            After discussion, the Committee agreed that its cash limit for the 2010/2011 financial year be £43,057,644 and approved the allocation of resources as set out within the foregoing appendix.