Community Forum HBBC : Funding and Council Offices Relocation to site on the corner of

` Community Forum HBBC : Funding and Council Offices Relocation to site on the corner of Hawley Road and Rugby Road 7 October 2010 Steve Atkinson, Chief Executive Sanjiv Kohli, Deputy Chief Executive `

` National and Local Context Coalition Government Announcements • Need to find 25% - 40% savings over life of this Parliament • What does this mean for HBBC? `

` HBBC Funding GROSS BUDGET : circa £40m NET BUDGET REQUIREMENT : £11.6m FUNDED FROM FINANCE SETTLEMENT : £7.4m FUNDED FROM COUNCIL TAX : £4.2m `

` So, what does 25% - 40% cuts mean? • Reduction in Central Government Funding £1.85m - £2.96m • OR • Reduction in Net Budget Requirement £2.9m - £4.64m • Range could be £1.85m to £4.6m (£7.4m) (£11.6m) `

` Budget ReductionsHBBC made a head start:Medium Term Financial Strategy 2010 to 2013 already assumed a 15% reduction in Central Government funding over the three years Over three years saved £2.2m Of which Senior Management savings of £250,000Other staff savings - £430,000 `

` Rationale for Decision on Council Offices • Not only about saving existing base costs but also avoiding future costs to Tax Payer `

` Options Considered In 2008 Council made the decision that current Council offices at Argents Mead were not fit for purpose Refurbishment cost £6.5m - Not AffordableThe main alternatives considered: • Extension of Florence House with shop front customer centre • The Atkins Development (short term accommodation) • The Bus Station Development • The former Flude’s Development • Redevelopment (new build) on Argents Mead site • New Build on Southfield Road (Richard Roberts Site) `

` The Development `

` • Development Advantages • Atkins Business Case Supported • Cost of relocation to Bus Station saved (1 office move) • All HBBC services (inc Data Centre) are co-located in custom designed development • (Leisure Services remain at the current Leisure Centre Option with partners) • Financial agreement to minimise H&S risks at Argents Mead for extended accommodation period • Cost to refit 17,000sq/ft space at the Bus Station or Cost of additional accommodation saved (Civic and Florence House impacts) • Benefit of £2.75m capital receipt in 2014 • Move to sustainable development achieved earlier (potential 3 years) • Potential partnership opportunities with financial incentives and ongoing shared revenue costs (room for up to 44,000sq/ft if required) • Parking solution for HBBC employees/visitors/members/partners • Green Travel option with close links to Rail and Bus routes • Already has planning permission `

` • DevelopmentDisadvantages • Lost investment in Atkins building (some areas fitted out to our requirements are not immediately suitable for small managed workspace units which may have Capital implications for HBBC) • Lease option for 150 yrs lost in favour of Capital receipt (£2.75m) • Potential delay in Capital receipt from Argents Mead disposals `

` Capital Cost Implications A) Previously `

` Capital Cost Implications B) Now `

` Revenue Savings Detailed Projections:- • Over next seven years when compared with alternative of moving to Atkins and then the Bus Station: • Revenue Savings - £217,986 • OR • 5.5% in Council Tax `

` Any Questions? `

Community Forum HBBC : Funding and Council Offices Relocation to site on the corner of