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A Vision for the next 5 Years Wes Lumley Chief Executive Officer

A Vision for the next 5 Years Wes Lumley Chief Executive Officer. BDC Financial Strategy. BDC Financial Strategy. BDC Financial Strategy. Strategic approach Recognise future loss of RSG and make plans to address fully Effectively aim to be self financing (Council Tax and Business Rates)

shoshana-herrera
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A Vision for the next 5 Years Wes Lumley Chief Executive Officer

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  1. A Vision for the next 5 Years Wes Lumley Chief Executive Officer

  2. BDC Financial Strategy

  3. BDC Financial Strategy

  4. BDC Financial Strategy • Strategic approach • Recognise future loss of RSG and make plans to address fully • Effectively aim to be self financing (Council Tax and Business Rates) • Will need to aim for significant growth: • Business rates (20% to be retained by Authority) • New Homes Bonus (£1,000 per property for 6 years) • Continue to do more of the same + • Consideration of priorities

  5. To verify strategic thinking agreed to invite a LGA Peer Review Peer Review Focus – “Development of a sustainable financial strategy, with particular emphasis on economic growth in each district” Key areas of focus were: Economic growth Achieving further efficiencies through the Strategic Alliance Service Prioritisation Peer Review

  6. Findings of Peer Review Team in respect of economic growth were: Develop a Growth Strategy Reflect The Growth Strategies of the two LEPs The Local Plan needs to reflect and take forward the Growth Strategy Develop and promote development and engage with businesses to create interest for investment More proactive account management with local businesses Economic Growth

  7. An application has been made to the LGA Economic Advisory Programme to develop an Economic Growth Strategy and to help us: Maximise leverage with LEPs Develop a business facing culture Successfully package and source finance for local infrastructure development Sustain existing and new business growth Create better quality jobs Enable us to unlock stalled residential sites which have planning approval Response

  8. Growth Prospects • Local Plan 2011 - 2031 • Housing • 300 new dwellings per annum (6,000 in total) • Employment Space • 185ha over life of the plan

  9. Growth Prospects - New Homes Bonus • After latest Govt consultation likely to be an average of £800 per property for 6 years • If achieve Local Plan (300 pa) - 300 x £800 = £240,000 each year for 6 years, a total of £1,440,000 • Over 5 years to 2017/18 this would raise some £1.3m • Also applies to bringing empty properties back into use – there are some 900 in the district • Additional properties also raise additional council tax – in the region of extra £30,000 each year

  10. Growth Prospects – Business Rates • Potential developments: • Lang O’Rourke • Sports Direct • U.D.G. • Morrisons/Tesco • Co-op Distribution Centre • East Midlands Designer Outlet • These have the potential to generate an extra £3.5m in business rates which at 20% would provide over £700,000 for the Council • This has already led to an extra £155,000 for the Council for the current year

  11. Achieving further efficiencies through the Strategic Alliance • Findings of Peer Review Team in respect of achieving further efficiencies through the Strategic Alliance were: • A clear direction for the Strategic Alliance should be agreed and communicated to staff • No clear route map or forward plan – impacts on confidence of managers, staff and partners • Organic rather than strategic approach • Processes not changed causing inefficient duplication and frustration

  12. Achieving further efficiencies through the Strategic Alliance • Lack of harmonisation of terms and conditions will become major barrier to further integration • Lack of capacity and ownership to drive through change and transformation • Both councils need to champion SA • Development of common policies and procedures would make managers more effective, speeding up decision making and avoiding duplication

  13. Achieving further efficiencies through the Strategic Alliance • Further opportunities for joint working need to be explored and developed to improve customer satisfaction and provide savings • Celebrate success and share learning • Consider more public-public partnerships to help reduce back office costs • Important that Bolsover invests the Transition/Efficiency Support Grant to transform services and deliver long term savings

  14. Achieving further efficiencies through the Strategic Alliance • Transformational model put forward by peer team:

  15. Accommodation Values / HR / T&Cs / policies Process re-engineering Transformation Programme ICT - enabling Communication Project management Agile working

  16. Visioning session held with two Cabinets/Executives facilitated by LGA: Findings considered and Transformational Programme model initially discussed Requested that CEO draws up proposals including: Appropriate management structure to reflect peer review findings Management structure to reflect requirement to further reduce senior management To take forward Transformation agenda Response

  17. Strategic Alliance – Management structure to reflect Peer Review • Three Directorates: • Growth – reflect Economic Growth Strategy and consist of growth related services such as Economic Development, Housing strategy, Planning and Environmental Health • Transformation – reflect peer review transformational opportunities such as customer services, but does not preclude other services being subject to transformation • Operations – largely reflect front line services such as Street Scene and Housing

  18. Transformation Agenda • High volume transactional services such as Customer services and Revenues and Benefits • Use of External Support through East Midlands Council to look to harmonise terms and conditions and internal policies • Use of Joint Scrutiny to examine potential for joint external policies in part or in whole • Investigation of possible use of a Special Purpose Vehicle (SPV) to facilitate speedier resolution • Annual savings potential of some £1,200,000 (Alliance) based on outcome elsewhere • Will be need for upfront investment in people and technology £100,000 to £200,000

  19. BDC Overall 5 Year Financial Impact • New Homes Bonus - £1,300,000 • Increased Business Rates - £700,000 • Transformation Agenda - £600,000 • Other initiatives • Management Restructure - £150,000 • Outturn Review - £250,000 • Property Rationalisation - £100,000 • Revenue Strategy - £50,000 • Vacancy Management - £50,000 • Overall £3,200,000

  20. BDC Overall 5 Year Financial Impact • Caveats: • Budget versus grant reduction • Economic conditions • will we achieve New Homes Bonus levels? • Complex calculation • History of completions • Will there be business failures? • One-off costs will be incurred • Govt policy? • Is there the will to achieve? • If don’t take up this strategic approach what is the alternative? • Prioritising services to determine which will be cut • The Peer team said – “Likely to have to revisit commitment to maintaining frontline service provision – prioritising key services”

  21. Growth • Monitoring (Residential) • Steady decline in net completions: • 2008/09 – 243 • 2009/10 – 199 • 2010/11 – 203 • 2011/12 – 124 • 2012/13 – 120

  22. Thank You

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