Agenda Document Pack - Finance and Resources Committee - 18/09/2024
Perth and Kinross Council · 18 September 2024
Back to Finance and Resources Committee — 18 September 2024 and its agenda
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Securing the future… • Improving services • Enhancing quality of life • Making the best use of public resources Council Building 2 High Street Perth PH1 5PH 11/09/2024 A hybrid meeting of the Finance and Resources Committee will be held in the Council Chamber on Wednesday, 18 September 2024 at 14:00. If you have any queries please contact Committee Services on (01738) 475000 or email Committee@pkc.gov.uk. THOMAS GLEN Chief Executive Those attending the meeting are requested to ensure that all notifications are silent on their device and other devices are in silent mode. Please note that the meeting will be broadcast online and recorded. The recording will be publicly available on the Council’s website following the meeting. Members: Councillor Stewart Donaldson (Convener) Councillor Grant Laing (Vice-Convener) Bailie Chris Ahern Bailie Alasdair Bailey Councillor Peter Barrett Councillor Andy Chan Councillor Dave Cuthbert Councillor Eric Drysdale Councillor John Duff Councillor David Illingworth Provost Xander McDade Councillor Tom McEwan Depute Provost Andrew Parrott Councillor John Rebbeck Councillor Caroline Shiers Councillor Colin Stewart Page 1 of 132
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Finance and Resources Committee Wednesday, 18 September 2024 AGENDA MEMBERS ARE REMINDED OF THEIR OBLIGATION TO DECLARE ANY FINANCIAL OR NON-FINANCIAL INTEREST WHICH THEY MAY HAVE IN ANY ITEM ON THIS AGENDA IN ACCORDANCE WITH THE COUNCILLORS’ CODE OF CONDUCT. 1 WELCOME AND APOLOGIES/SUBSTITUTES 2 DECLARATIONS OF INTEREST 3 MINUTES 3(i) MINUTE OF MEETING OF FINANCE AND RESOURCES COMMITTEE OF 12 JUNE 2024 FOR APPROVAL (copy herewith) 5 - 8 3(ii) MINUTE OF MEETING OF THE EMPLOYEES JOINT CONSULTATIVE COMMITTEE OF 18 MARCH 2024 FOR NOTING (copy herewith) 9 - 14 4 OUTSTANDING BUSINESS STATEMENT (copy herewith 24/259) 15 - 16 5 REVENUE BUDGET 2024/25 - UPDATE NO. 1 Report by Chief Finance Officer (copy herewith 24/260) 17 - 54 6 COMPOSITE CAPITAL BUDGET 2024/30 & HOUSING INVESTMENT PROGRAMME 2024/29 - MONITORING REPORT NO. 1 Report by Chief Finance Officer (copy herewith 24/261) 55 - 86 7 TRANSFORMATION AND CHANGE PROGRAMME UPDATE Report by Strategic Lead - Projects and Programmes (copy herewith 24/262) 87 - 104 8 POLICY ON DISPOSAL OF MINIBUSES Report by Strategic Lead - Environment and Infrastructure (copy herewith 24/263) 105 - 128 Page 3 of 132
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9 REVISED SCHEME OF THE EMPLOYEES JOINT CONSULTATIVE COMMITTEE (copy herewith 24/264) 129 - 132 Page 4 of 132
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DRAFT FINANCE AND RESOURCES COMMITTEE Minute of hybrid meeting of the Finance and Resources Committee held in the Council Chamber, 2 Hight Street, Perth on Wednesday 12 June 2024 at 1.30pm. Present: Councillors S Donaldson and G Laing, Bailie C Ahern and Bailie A Bailey, Provost X McDade, and Councillors P Barrett, A Chan, D Cuthbert, E Drysdale, J Duff, I James (substituting for Councillor C Shiers), D Illingworth, S McCole (substituting for Depute Provost A Parrott), T McEwan, J Rebbeck and C Stewart. In Attendance: T Glen, Chief Executive; C Mailer, Director (Strategy, People and Resources); A Williams, Director (Economy, Place and Learning); S Devlin, E Ritchie, K Steven, S Merone, N Taylor, P Taggart, B Martin-Scott, F MacKay (Economy, Place and Learning); L Simpson, S Walker, G Boland, S Crawford, C Guild, P Johnstone, C Robertson, R Graham, K Molley, A Brown and S Dockerill (Strategy, People and Resources). Apologies: Depute Provost A Parrott and Councillor and C Shiers. Councillor S Donaldson, Convener, Presiding. THE CONVENER LED ON ITEMS 1-6, 8-9 AND 11 AND THE VICE-CONVENER LED ON ITEMS 7, 10 and 12. 1. WELCOME AND APOLOGIES The Convener welcomed all those present to the meeting and apologies were noted as above. 2. DECLARATIONS OF INTEREST There were no declarations made in terms of the Councillors’ Code of Conduct. 3. MINUTE OF PREVIOUS MEETING The minute of meeting of the Finance and Resources Committee of 24 April 2024 was submitted and approved as a correct record. 4. OUTSTANDING BUSINESS STATEMENT Resolved: The status of action in the Outstanding Business Statement (24/179) be noted and completed actions removed accordingly. 5. PEOPLE AND CULTURE STRATEGY 2024-2028 There was submitted a report by the Corporate Human Resources Manager (24/180) seeking approval of the People and Culture Strategy 202402928 and the associated action plan. Resolved: 3(i) Page 5 of 132
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DRAFT (i) The People and Culture Strategy, as set out in Appendix 1 to Report 24/180, be approved. (ii) It be agreed that updates on progress of actions in the action plan and any new or emerging issues arising during the life cycle of the strategy be reported annually to the Finance and Resources Committee. 6. PROCUREMENT UPDATE There was submitted a report by Strategic Lead – Legal and Governance (24/181) providing an update on the Council’s procurement activity, setting out an Annual Procurement Report for financial year 2023/24 and the planned procurement activity for future years. Resolved: (i) The Procurement Annual Report 2023/24 be approved for publication. (ii) The record of tenders accepted during 2023/24 under the Council’s scheme of delegation be noted. (iii) Monies provided to third parties under the Code of Guidance for Following the Public Pound during 2023/24 be noted. (iv) The planned procurement activity, as far as known for future years, be noted. 7. PITLOCHRY ASSET REVIEW There was submitted a report by Strategic Lead – Property Services (24/182) seeking approval to consolidate and optimise Council assets and to develop the community asset offer in Pitlochry in line with the Council’s Corporate Asset Management Framework, to ensure that our asset base is efficient, effective and fit for purpose now and in the future within that locality. Motion (Councillor G Laing and Provost X McDade) (i) The extensive community engagement undertaken to date within to help shape the recommendations be noted. (ii) The review findings, as set out in Section 5 of Report 24/182, be noted. (iii) The recommendations, as set out in Section 7 of Report 24/182, be approved: consolidate community facilities in a redeveloped secondary school/’community campus’ model, as per Option 2C, with a gym/4 court games hall. remodel and upgrade internal secondary school environment to make enhanced facilities more functional within existing footprint. improve accessibility during and after normal school operating hours for public library, council services and leisure services at weekends. consolidate locality depot arrangements at Aldour depot, declaring Cloichard depot surplus. encourage and support Community Asset Transfer of Cloichard Depot and Pitlochry Town Hall. redevelop Tyree House, the area office/library site as social housing, redevelop Atholl Leisure Centre site/building for affordable housing contributing to reducing the unmet demand in Pitlochry area. establish a long-term full repair and insurance lease of the Pavilion to Highland Perthshire Community Partners. maintain public toilets (status quo). Page 6 of 132
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DRAFT (iv) The funding option, as set out in Section 5 of Report 24/182, be approved. Amendment (Councillors P Barrett and T McEwan consolidate community facilities in a redeveloped secondary school/’community campus’ model, as per Option 2B, with a gym/2 court games hall. In terms of Standing Order 21.5 a roll call vote was taken. 13 members voted for the Motion as follows: Bailie A Bailie, Councillors D Cuthbert, S Donaldson, E Drysdale, J Duff, D Illingworth, I James, G Laing, S McCole, Provost X McDade, T McEwan, J Rebbeck and C Stewart. 3 members voted for the Amendment as follows: Bailie C Ahern, Councillors P Barrett and A Chan. Resolved: In accordance with the Motion. 8. AUTHORITY TO WRITE OFF BAD DEBTS AND OBSOLETE STOCK There was submitted a report by Strategic Lead – Finance and Business Support (24/182) seeking approval to write off identified debts in respect of Sales ledger; Council Tax (including Water & Wastewater charges); Non-Domestic Rates; Irrecoverable Rents; Housing Benefit Overpayments and Car Park Trading Account Income; and (2) seeking approval to write off obsolete stock and write off other miscellaneous balances. Resolved: (i) It be approved that all amounts detailed in section 4 of Report 24/182 and included in appendices 1 to 5 are written off for accounting purposes. (ii) It be noted that whilst these amounts are written off, the files are not closed, and every effort will be made to collect outstanding debt where recovery is cost effective. (iii) The removal of charges for services for people seeking asylum for a further year detailed in section 5 of Report 24/182, be approved. (iv) The revised charges set out in section 6 and appendix 6 of Report 24/182, be approved. 9. MISSING SHARES PILOT – FEEDBACK AND RECOMMENDATIONS There was submitted a report by Strategic Lead – Housing and Communities (24/183) detailing the benefits identified as a result of the pilot and recommends that the Missing Shares Service be extended for a further 3 years. Resolved: The funding of any Missing Shares Service, for a further 3 years, via the second homes budget, as a recoverable income, be agreed. Page 7 of 132
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DRAFT 10. PERTH WEST PROGRESS REPORT There was submitted a report by Strategic Lead – Economy, Development and Planning (24/184) providing members with an update on the progress made in respect of the funding and income streams that will offset the estimated expenditure to deliver the first phase of the Perth West investment project. Resolved: (i) The anticipated decision path detailed in Report 24/184, be noted. (ii) It be agreed to proceed with Stage 1 of pre-construction works at an estimated costs of £1.55m against the capital allocation of £3m in 2024/25. (iii) It be requested for the Strategic Lead - Economy, Development and Planning, the Strategic Lead - Legal and Governance and the Strategic Lead – Finance and Business Support to report back on progress. 11. REQUEST TO DRAW DOWN EARLY LEARNING AND CHILDCARE RESERVE FOR SUPPORT IN PRIMARY 1 There was submitted a report by Strategic Lead – Education and Learning (24/185) providing details of the increased support required in Primary 1 and outlines of the purpose of drawing down funding the Early Learning and Childcare reserve to meet this level of need. Resolved: (i) The contents of Report 24/185, be noted. (ii) The draw down of Early Learning and Childcare (ELC) reserves of £393,000 in financial year 2024/25 and £243,000 in financial year 2025/26 to provide additional support in P1 For session 2024/25. 12. DISPOSAL OF MINIBUSES There was submitted a report by Strategic Lead – Environment and Infrastructure (24/187) seeking approval to amend the Council’s policy on the disposal of Fleet and Mechanical Equipment, with specific regard to minibuses which have reached the end of their operational life within the Council service. Resolved: (i) It be agreed that the Disposal of Fleet and Mechanical Equipment Policy is amended to allow an option to transfer minibuses, if deemed suitable, to community groups. (ii) It be requested for officers to develop a policy for disposal of minibuses and selection criteria for transfer of suitable vehicles to community groups. Page 8 of 132
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PERTH AND KINROSS COUNCIL FINANCE AND RESOURCES COMMITTEE EMPLOYEES JOINT CONSULTATIVE COMMITTEE Minute of hybrid meeting of the Employees Joint Consultative Committee held in Room 410, 2 High Street, Perth on Monday 18 March 2024 at 2.00pm. Present: Representing Perth and Kinross Council: Councillors B Leishman, S McCole and J Rebbeck. Present: Representing Trade Unions: S Hope (UNISON) V Leonard (GMB) C Weston (EIS) In Attendance: L Hamilton, P Johnstone, L McGeorge, C Judge, N Taylor, F Thomson, and D Williams (all Strategy, People and Resources); F MacKay (Economy, Place and Learning). Apologies: Councillor C Reid, J Kettles, S Robertson and S Topen-Cooper, S Hope in the Chair. 1. WELCOME AND APOLOGIES S Hope welcomed all present to the meeting and apologies were noted above. 2. DECLARATIONS OF INTEREST There were no declarations of interest made in terms of the Councillors’ Code of Conduct. 3. MINUTE OF MEETING OF THE EMPLOYEES JOINT CONSULTATIVE COMMITTEE OF 19 JUNE 2023 FOR APPROVAL The minute of meeting of the Employees Joint Consultative Committee of 25 September 2023 was submitted and approved as a correct record. 4. MATTERS ARISING There were no matters arising. 5. HEALTH AND SAFETY PERFORMANCE REPORT QUARTER 3 – 2023/24 There was a report submitted (G/24/36) informing and advising the Employees Joint Consultative Committee in monitoring health and safety 3(ii) Page 9 of 132
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compliance and performance across Perth and Kinross Council and providing an overview of health and safety activities undertaken. Resolved: The contents of Report G/24/36, be noted. 6. FIRE SAFETY QUARTERLY REPORT – QUARTER 3 – 2023/24 There was a report submitted by Regulatory Services Manager (G/24/37), approved by Strategic Lead, Strategic Planning, People and Performance informing the Employees Joint Consultative Committee in monitoring fire safety performance across Perth and Kinross Council and providing an overview of fire safety activities undertaken. In introducing the report, L Hamilton advised that reviews of priorities of fire risk assessments were currently taking place. Councillor McCole advised that the Action Plans were not being kept fully updated, and requested that the importance of this be reinforced. Resolved: The contents of Report G/24/37, be noted. 7. STAFF REPORTING: INCIDENTS OF VIOLENCE AND AGGRESSION AND INCIDENTS OF DISTRESSED/CHALLENGING BEHAVIOUR IN EDUCATION SETTINGS, TERM 2 – 2023/24 There was submitted a report (G/24/38) by the Strategic Lead – Education and Learning, informing Employees Joint Consultative Committee of the Education Service’s performance in managing and reducing incidents of violence and aggression or distressed and challenging behaviour that has impacted staff in the workplace. It provides a summary of the information gathered in Term 2 of academic year 2023/2024 in relation to incidents in schools and other educational settings which result in an emotional or physical impact on a member of staff. It also provides information on the activity of the established Working Group to prevent and reduce the number of incidents. In presenting the report, F MacKay, Education and Learning, advised that there had been a reduction in incidents of violence and aggression in primary schools in Perth and Kinross, adding that this had been a real area of focus. F MacKay also advised that less staff had been involved in repeat incidents, and that a revised framework for intervention had been introduced. F Mackay further advised that a Power BI dashboard had been launched for Quality Improvement Officer’s (QIO’s) to be able to view the appropriate data, and it was hoped that this would be extended to Headteachers, and also advised that the working group had looked at schools with a high number of incidents over Terms One and Two. Page 10 of 132
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C Weston commented that, in terms of year to year comparison, the number of incidents of violence and aggression was still rising. C Weston added that she felt it was important for posters in schools to emphasise that inappropriate behaviours were not acceptable, adding that she also felt it helpful that the Council provided reassurance to Trade Union members. In response to a question from Councillor Rebbeck regarding the working group, S Hope advised that he felt the work being undertaken was good but emphasized the importance of now getting this into practice. S Hope added that he did feel there was an element of under-reporting of incidents and, having undertaken school visits, felt that some inappropriate behaviour had become normalized. In response to a further query from Councillor McCole regarding under-reporting, F MacKay confirmed that one of the purposes of the working group was to resolve this issue. Resolved: The contents of Report G/24/38, be noted. 8. FLEXIBLE WORKING FRAMEWORK UPDATE There was submitted a report (G/24/39) by the Corporate HR Manager providing an update on activity to introduce the Flexible Working Framework following approval by the Finance and Resources Committee in January 2024. In introducing the report, F Thomson advised that a disability staff network meeting had taken place the previous week, and some practical matters had been raised, such as arrangements and training for Evac-Chairs in Council buildings. In response to a query from C Weston, F Thomson confirmed that this policy would still apply to teaching staff applying for reduced hours. F Thomson advised that more communications would be published in the coming week, including links to guidance on requests for reduced hours. Resolved: The contents of Report G/24/38, be noted. 9. HEALTH AND WELLBEING UPDATE There was a report submitted by Corporate HR Manager (G/24/40) providing (i) an update on Health and Wellbeing data; and (ii) providing an update on current Health and Wellbeing activities. Resolved: The contents of Report G/24/40, be noted. Page 11 of 132
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10. EMPLOYEE SURVEY UPDATE There was a report submitted by Corporate HR Manager (G/24/41) providing an update on the activity that has been taking place and plans for the issue of the employee survey. C Judge advised that the annual employee survey had been stopped in 2018, with the Council switching to pulse surveys in 2020. C Judge advised that the decision to bring back the annual survey had been taken with the Chief Executive, adding that work was being undertaken with the Senior Leadership Team in this regard. C Judge added that consultation had been taken with the NHS regarding their staff survey. C Judge advised that broad themes were outlined in the report, but advised that more themes would be added in the survey. C Judge advised that results would be published at a team level, and that results and next steps would be outlined at the next meeting of this Committee. S Hope added that he felt the workshops which had taken place were really beneficial, and added the importance of promoting the survey. Resolved: The contents of Report G/24/41, be noted. 11. PERFORMANCE DEVELOPMENT DISCUSSION UPDATE There was a report submitted by Corporate HR Manager (G/24/42) providing an update on implementation of the Performance and Development Discussion (PDD) process and plans for future work. C Judge advised that the framework had been launched in early January 2024, and since then over 100 employees had completed it, with the feedback being positive. C Judge further advised that continued support would be available to managers. Resolved: The contents of Report G/24/42, be noted. 12. PEOPLE AND CULTURE STRATEGY P Johnstone, Corporate HR Manager, delivered a verbal update on the People and Culture Strategy. P Johnstone advised that the new name for the consolidated Human Resources (HR) and Organisational Development (OD) is ‘People and Culture’, and that an operating model was presently being looked at. P Johnstone advised that it was planned for a People and Culture strategy to be submitted to the Finance and Resources Committee on 12 June, and that Trade Unions would be invited to meetings individually. Page 12 of 132
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P Johnstone further advised that there would be a shift in HR and OD provision across the Council, and that a mapping exercise was taking place in this regard. 13. ANY OTHER COMPETENT BUSINESS The was no other competent business. 14. DATE OF NEXT MEETING 17 June 2024. Page 13 of 132
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FINANCE AND RESOURCES COMMITTEE OUTSTANDING BUSINESS STATEMENT (OBS) (Report No. 24/259) Please note that this statement sets out outstanding decisions of this committee along with an update and estimated completion date. Actions which are overdue are shaded for ease of reference. Where an update reflects that an action is complete then the Committee’s agreement will be sought to its removal from the OBS. No Minute Reference Subject Title Outstanding Action Update Lead Officer/ Service Action Due Action Expected 22. 23 Mar 23 Executive Sub- Committee Revenue Budget 2022/23 – Tayside Contracts The Strategic Lead - Legal and Governance to raise the issue of the 75% rule and the possibility of flexible voting arrangements with the Clerk of Tayside Contracts Joint Committee and the Head of Legal at Angus Council. The Strategic Lead – Legal and Governance to meet with the Clerk of Tayside Contracts Joint Committee and the Head of Legal at Angus Council over the Summer recess to discuss the voting arrangements. Lisa Simpson 18 September 2024 18 September 2024 25. 12 June 2024 Item 5. People and Culture Strategy 2024-2028 A table on Perth & Kinross estimated population by sex and single year of age in PKC area of Scotland be shared with members. Email response was circulated to members (26 July). COMPLETED Pauline Johnstone 18 September 2024 18 September 2024 26. 12 June 2024 Item 11. Request to Draw Down Early Learning and Childcare A report to be shared with members on the different categories and trends of children and young Email response was circulated to members (8 August). Sheena Devlin 18 September 2024 18 September 2024 4 Page 15 of 132
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No Minute Reference Subject Title Outstanding Action Update Lead Officer/ Service Action Due Action Expected Reserve for Support in Primary 1 people with additional support needs within Perth and Kinross ELC settings and schools. COMPLETED 27. 12 June 2024 Item 12. Policy on Disposal of Minibuses A policy for disposal of minibuses and selection criteria for transfer of suitable vehicles to community groups be submitted to the Finance and Resources Committee. A report will be submitted to the Finance and Resources Committee on 18 September 2024. COMPLETED Fraser Crofts 18 September 2024 18 September 2024 Page 16 of 132
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PERTH & KINROSS COUNCIL FINANCE & RESOURCES COMMITTEE 13 SEPTEMBER 2024 REVENUE BUDGET 2024/25 – UPDATE NO. 1 Contact Officer: Scott Walker, Chief Finance Officer (Report No. 24/260) 1. PURPOSE 1.1 This report provides an update on progress with the 2024/25 General Fund Revenue Budget based upon the June 2024 ledger, updated for any subsequent known material movements, and the projected financial position of the Housing Revenue Account. 1.2 The total net projected over spend on the 2024/25 General Fund Management Budget is £1.608 million (£1.008 million at this time in 2023/24) (see Appendix 1). 2. RECOMMENDATIONS The Committee is requested to: A. note the contents of the report, B. note the projected outturn for General Fund Services set out in Section 5 and Appendix 1 and 2, C. note the projected outturn for Corporate Budgets set out in Section 6, D. note the funding update provided in Section 7, E. note the projected outturn for the Housing Revenue Account, which is summarised in Section 8 and Appendix 3, F. approve the adjustments to the 2024/25 Management Revenue Budget detailed in Sections 10,11 & 12 and Appendices 1, 2, 4, 5, 6, 7 and 8, G. note the financial risks set out in Section 13 and Appendix 9. 3. STRUCTURE Section 4 Background Section 5 Revenue Monitoring – Service Budgets Section 6 Revenue Monitoring – Corporate Budgets Section 7 Revenue Monitoring – Funding Section 8 Revenue Monitoring – Other Updates Section 9 Issues Arising from Financial Year 2023/24 Section 10 2024/25 Additional Funding Section 11 2024/25 Virements Section 12 2024/25 Movements in Reserves Section 13 Financial Risks Section 14 Conclusions 5 Page 17 of 132
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4. BACKGROUND 4.1 This report updates the Committee on progress with the 2024/25 Revenue Budget. Appendix 1 to this report summarises the current projected year end (outturn) position for each Service based upon the June 2024 ledger, updated for any subsequent known material movements. 4.2 The budget reflected in Column 1 of Appendix 1 to this report is that approved by the Council in setting the final 2024/25 Revenue Budget on 28 February 2024 (Report No. 24/63 refers). In addition, adjustments approved by the Finance & Resources Committee on 24 April 2024 (Report No. 24/130) are reflected in Appendix 1 (Column 2). 5. REVENUE MONITORING – SERVICE BUDGETS 5.1 The total net projected over spend on Service budgets, which is summarised in Section 1 of Appendix 1 to this report, is £1.402 million which represents 0.4% of total net Service expenditure. 5.2 Details of variances against individual Service budgets are shown in Appendix 2 to this report with the most significant variances summarised below. 5.3 The management of Service over and under spends are considered throughout the financial year and may also form part of the Revenue Budget strategy for future years. 5.4 There remains a risk that the Council continues to experience increases in costs over the short to medium term that are higher than budgeted. Going forward, this may continue to have an impact on projected outturns and future years’ budgets. Education & Learning 5.5 The projected outturn for Education & Learning excluding Devolved School Management (DSM) and the Pupil Equity Fund (PEF) is currently anticipated to be £873,000 or 0.5% more than budget. The individual elements contributing to this position are summarised in the following table and with narrative on the significant variances below. Function Projected Outturn Movement £’000 % £’000 Education & Learning Core Under spend (5) (0.4) n/a Nursery Sector Under spend (677) (2.9) n/a Primary Sector Over spend 1,484 3.2 n/a Secondary Sector Over spend 80 2.1 n/a Special Sector Under spend (9) (0.05) n/a TOTAL Over spend 873 0.5% n/a 5.6 Within the Nursery Sector there is a projected under spend of £677,000. This is due to additional staff slippage in excess of the budgeted target as well Page 18 of 132
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as projected under spends on deferred places due to levels of uptake that are currently less than that budgeted. 5.7 In the Primary Sector there is a projected overspend of £1.484 million because the budgeted slippage target is currently not being met. As outlined in previous updates, all classes require to be appropriately staffed. 5.8 Within the Secondary Sector there is a projected overspend of £80,000 because the slippage target is currently not being met and increased loan charges. 5.9 The Devolved School Management Scheme is currently projected to be on target. However, schools are experiencing challenges in delivering approved staff slippage targets and facing inflationary pressures against budgets that have been reduced over previous years. The budgets for the Devolved School Management scheme are allocated by financial year (April – March), whereas expenditure is incurred by academic year (August – June). 5.10 At this stage of the academic year, expenditure met from the Pupil Equity Fund (PEF) is projected to be £100,000 less than the allocation from the Scottish Government of £1.874 million. Schools are being instructed to use this year’s PEF by 31 March 2025. It is anticipated that the projected under spend on teacher and support costs will be carried forward to 2025/26 to meet commitments. The budgets for the Pupil Equity Fund scheme are allocated by financial year, whereas expenditure is incurred by academic year. Children, Families & Justice 5.11 The projected outturn for Children, Families & Justice is currently anticipated to be on target against budget. The individual elements contributing to this position are summarised in the following table and with narrative on the significant variances below. Function Projected Outturn Movement £’000 % £’000 Children & Families On target 0 - n/a Justice Service On target 0 - n/a TOTAL On Target - - n/a 5.12 Despite Children & Families being on target against budget, there are projected over spends because slippage targets are not currently being met and additional residential placements. This is offset by projected under spends on foster, kinship and adoption payments. Housing & Communities 5.13 The projected outturn for Housing & Communities is currently anticipated to be £10,000 or 0.1% less than budget. The individual elements contributing to this position are summarised in the following table and with narrative on the significant variances below. Page 19 of 132
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Function Projected Outturn Movement £’000 % £’000 Service Wide Under spend (75) (0.8) n/a Housing General Fund Over spend 50 0.6 n/a Bereavement Services Over spend 15 1.9 n/a TOTAL Under spend (10) (0.1)% n/a 5.14 On a Service Wide basis, there is a projected under spend of £75,000 due to staff slippage in excess of the budgeted target. 5.15 Within the Housing General Fund there is a projected over spend of £50,000 due to void rent loss on housing support properties and increased costs relating to homelessness. Property Services 5.16 The projected outturn for Property Services is currently anticipated to be £686,000 or 1.0% more than budget. The individual elements contributing to this position are summarised in the following table and with narrative on the significant variances below. Function Projected Outturn Movement £’000 % £’000 Service Wide Over spend 426 0.6 n/a Energy Under spend (300) (3.5) n/a Maintenance Over spend 150 3.2 n/a Facilities Management Over spend 240 3.9 n/a Catering Over spend 170 2.4 n/a TOTAL Over spend 686 1.0% n/a 5.17 On a Service Wide basis, there is a projected over spend of £426,000. This is because, currently, slippage targets are not being met, delays in delivering savings from operational buildings which are partially offset by additional income. 5.18 On Energy, there is a projected under spend of £300,000 due to reduced rates and consumption. 5.19 On Maintenance, there is a projected over spend of £150,000 because of responsibility for Bells Sports Centre transferring back to the Council. 5.20 Within Facilities Management, there is a projected over spend of £240,000. This is due to a delay in implementing the approved savings following consultation and implementation of the saving from the beginning of the academic year, i.e. August 2024. 5.21 In Catering there is a projected over spend of £170,000. This is due to actual meals delivered from April to June 2024 being 3% higher than budgeted position with the increase mainly in free school meals. Page 20 of 132
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Legal & Governance 5.22 Within Legal & Governance there is a projected over spend of £40,000 or 0.9%. This is because, currently, slippage targets are not being met, partially offset by projected under spends on supplies & services and additional income. Customer & Digital 5.23 The projected outturn for Customer & Digital is currently anticipated to be £187,000 or 1.6% more than budget. The main reasons for this are projected over spends on service charges from social housing providers and supplies & services including printing and interpreter services. Strategic Planning & Performance 5.24 Within Strategic Planning & Performance, there is a projected under spend of £44,000 or 0.6%, on staff costs and supplies & services and additional income. Finance & Business Support 5.25 The projected outturn for Finance & Business Support is currently anticipated to be £350,000 or 4.0% less than budget. The individual elements contributing to this position are summarised in the following table and with narrative on the significant variances below. Function Projected Outturn Movement £’000 % £’000 Finance Over spend 17 0 n/a Business Support Under spend (367) (9.0) n/a TOTAL Under spend (350) (4.0)% n/a 5.26 Across Business Support, there is a projected under spend of £367,000 on staff costs due to the accelerated delivery of approved savings. 6. REVENUE MONITORING – CORPORATE BUDGETS 6.1 Included within Section 2 of Appendix 1 is an update on the Council’s Corporate budgets. More information on variances against individual budget headings are set out below. Health & Social care 6.2 On 21 August 2024, Perth & Kinross Integration Joint Board (IJB) were advised that, consistent with many other integration joint boards, they face significant financial challenges in the current financial year. 6.3 Based on activity to 30 June 2024 (month 3), there is a projected over spend of £8.1 million. There are several areas that are causing this projected over spend as follows. Page 21 of 132
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• Prescribing • Out of Hours GP services (Angus IJB Lead Partner for all Tayside) • Care at Home (all care groups) • Unfunded Inpatient Beds • Older People Care Home Placements • Senior Medical cover • Delivery of approved savings 6.4 The IJB does have limited Reserves that can be applied, but these are insufficient to deal with the entirety of the current projected over spend. 6.5 An updated and more comprehensive financial position, based on the first four months of expenditure, will be presented to the IJB’s Audit & Performance Committee on 23 September 2024. This update will incorporate the impact of any recovery actions that are already underway including vacancy management and reducing discretionary spend. 6.6 A financial recovery plan will be presented to the IJB on 2 October 2024, and this may require the IJB to issue amendments to existing directions or consider additional directions. 6.7 The Finance & Resources Committee will receive a further update at the meeting on 21 November 2024 Council Tax Reduction Scheme 6.8 The application of the Council Tax Reduction Scheme is a statutory function for the Council. The promotion and encouragement of take up is a key responsibility for the Council, particularly when households are facing significant pressures on the cost of living. 6.9 The level of expenditure incurred by the Council is dependent upon two main drivers, firstly, the average number of weekly caseload and, secondly, the average value of weekly entitlements. 6.10 In the current financial year, the Council is supporting approximately 8,600 households across Perth and Kinross with the Council Tax Reduction Scheme with an average award of £16.91 per week. This results in a projected over spend on the Council Tax Reduction Scheme of approximately £150,000 which is reflected in Appendix 1. 7. REVENUE MONITORING – FUNDING 7.1 Further information on the Council’s funding is set out within Section 3 of Appendix 1. More information on variances against individual budget headings are set out below. Council Tax Income Page 22 of 132
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7.2 The amount of income the Council will generate from Council Tax is dependent on two main factors, firstly the collection levels and secondly, the number of Band D properties on the Valuation Roll. 7.3 Monitoring of Council Tax collection levels is carried out monthly. The following graph sets out collection performance to 31 August 2024 together with prior year comparative figures for the previous five financial years. 7.4 Between 2019/20 and 2023/24, the average collection figure to 31 August was 45.92%. The actual collection figure to 31 July 2024 was 37.17% which is consistent with the five-year average, but a 0.25% reduction on the comparable position in 2023. 7.5 Secondly, in setting the Council’s Revenue Budget, assumptions are made on increases in the number of Band D equivalent properties. The graph set out below suggests that actual growth levels are in line with budget assumptions. Page 23 of 132
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7.6 Given the 2024/25 collection figures that are set out at paragraph 7.4 above is consistent with previous years, and that the growth in the number of Band D equivalent properties is in line with expectations, it is currently anticipated that Council Tax income is on target for the current year. Non-Domestic Rates 7.7 The actual collection rate to 31July 2024 was 28.26%, compared to 22.89% for the same period in 2023/24. 8. REVENUE MONITORING – OTHER UPDATES Impact on Arm’s Length External Organisations (ALEOs) 8.1 The Council continues to work closely with its three Arm’s Length External Organisations (ALEOs) – Live Active Leisure (LAL), Perth Theatre & Concert Hall (PTCH) and Culture Perth & Kinross (CPK) who make an important contribution to the Corporate Plan through the current Culture, Physical Activity and Sport Strategies approved by Council in May 2023. 8.2 Currently, for the current financial year, all three ALEOs are projecting a deficit that is in line with their approved budgets. 8.3 The long-term sustainability of the Council’s ALEOs across future financial years will be kept under review with updates provided to future meetings of the Finance & Resources Committee. 8.4 Following a change in regulations and potential claims by trade unions relating to moving away from nationally determined pay agreements, it is Page 24 of 132
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proposed that Culture Perth and Kinross (CPK) realign their pay structure to that of the Council and Scottish Joint Committee (SJC) rates of pay to mitigate against any potential challenges by the unions. 8.5 CPK have advised that they have funds to do this in the current financial year from their own Reserves but will require additional funding to build this into their future cost model which will come back as a budget pressure from 2025/26 onwards. 8.6 The cost is approximately £121,000, calculated using data from 2023/24 staff cost model. The 2024/25 pay award is not yet known and therefore the total cost will be higher. Tayside Contracts 8.7 The operating environment for Tayside Contracts remains challenging. They continue to experience significant inflationary pressures on the price of staple foods – beyond that of the headline CPI and RPI rates quote more widely. 8.8 Beyond that, negotiations on the 2024/25 pay award are still ongoing. Should the outcome of the negotiations exceed budgeted levels, without sufficient external funding forthcoming, there is a risk that this will cause a further significant risk to the profitability of Tayside Contracts. 8.9 Tayside Contracts continue to identify mitigating actions and the three constituent Councils are looking at how they may assist. Work will continue between officers of the Council and Tayside Contracts to further refine these projections. 8.10 Both of these pressures may impact on the Council in the form of a request for additional financial support, as has been the case in previous financial years and / or the non-achievement of the budgeted income from the share of Tayside Contract’s surplus. 8.11 At this stage, the potential costs of providing additional financial support have not been factored into the Council’s projections. Any proposal to provide additional funding to Tayside Contracts will be brought back to a future meeting of the Finance & Resource Committee for approval by elected members. 8.12 In addition, given the financial challenges facing Tayside Contracts, there is a risk that the budgeted amount from the Trading Operations surplus of £550,000 will not be received in the current year. Housing Revenue Account 8.13 The Housing Revenue Account is currently projected to break even in the current financial year. The main elements are summarised below and set out in Appendix 5. Page 25 of 132
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8.14 Across the Housing Revenue Account activity there is a net projected under spend of £207,000. This is made up of additional income from Interest on Revenue Balances and staff slippage which is partially offset by projected over spends on energy and transport costs. 8.15 As a result of the variances identified above Capital from Current Revenue will increase by £207,000. 9. ISSUES ARISING FROM FINANCIAL YEAR 2023/24 9.1 In completing the 2023/24 Unaudited Annual Accounts, two issues have been identified which require adjustments to be made to the 2024/25 Management Budget. Devolved School Management / Pupil Equity Fund Balances 9.2 In setting the 2024/25 Final Revenue Budget on 28 February 2024 (Report No. 24/63 refers), the Council approved a projected Devolved School Management (DSM) carry forward of £239,000. However, the final under spend (which included agreed planned carry forwards) on the DSM scheme was £501,000 which is £262,000 more than anticipated. This level of under spend is well within the limits of the DSM scheme and it is normal practice to reflect this adjustment at this time. 9.3 Similarly, the Council approved a projected Pupil Equity Funding carry forward of £100,000. However, the final under spend was £116,000 which is £16,000 more. Schools spent 94.3% of their total Pupil Equity Funding in 2023/24. 9.4 ACTION: The Committee is requested to increase the Education & Learning budget by £278,000 to reflect the actual Devolved School Management scheme and Pupil Equity Fund balances brought forward from 2023/24. This adjustment is reflected in Appendix 1 (Column 3) to this report and has no overall impact on the level of uncommitted Reserves. Revenue Grants 9.5 Accounting arrangements under International Accounting Standards require that, subject to certain conditions, revenue grants which were received by the Council in 2023/24 but not utilised by 31 March 2024 should be accounted for in Reserves at the end of the financial year. Approval is therefore sought to draw down £7.832 million in 2024/25 from the earmarked Reserve for Revenue Grants. These revenue grants are set out in detail in Appendix 4. 9.6 Approval is now sought to adjust the following budgets • Education & Learning - £1.364 million, • Children, Families & Justice - £1.3 million, • Economy, Development & Planning - £2.670 million, • Environment & Infrastructure - £146,000, • Housing & Communities - £2.209 million, Page 26 of 132
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• Property Services - £5,000, • Health & Social Care - £138,000. 9.7 ACTION: The Committee is asked to approve the adjustments totalling £7.832 million to the above Service budgets (set out in detail in Appendix 4), funded from Reserves, to reflect revenue grants received in 2023/24 in respect of expenditure which will not be incurred until 2024/25. These additional adjustments are reflected in Appendix 1 (Column 3) to this report and have no overall impact on the budgeted level of uncommitted Reserves. 10. 2024/25 ADDITIONAL FUNDING 10.1 Since elected members were provided with the 2024/25 Revenue Budget update on 24 April 2024 (Report No 24/130 refers), notification has been received of additional resources in the current financial year from several sources as set out below. To ensure that the 2024/25 Management Budget continues to reflect the operational requirements of the Council, several adjustments are required, which are summarised below and included in Appendix 1 and Appendix 6. Scottish Government – Revenue Support Grant: • Local Government Pay Offer 2023/24 for 2024/25: £570,000 (Reserves) • ELC 1140 Funding: £440,800 (Education & Learning) • Teachers Induction Scheme: £31,020 (Education & Learning) 10.2 The Scottish Government has advised that the increase in Revenue Support Grant identified above of £1.042 million will be made through a redetermination of the Council’s Revenue Support Grant. It is therefore necessary to adjust budgets for Education & Learning, Reserves and Revenue Support Grant. 10.3 ACTION: The Council is asked to approve the adjustments set out at paragraph 10.2 which is reflected in Appendix 1 (Column 4) to this report. Other Funding 10.4 Other funding amounting to £7.226 million will be paid outside the Revenue Support Grant mechanism as Other Grant income and is, therefore, cost neutral in terms of the budget summary. Details of this funding is set out in Appendix 6. 10.5 ACTION: The Committee is asked to note the receipt of £7.226 million of additional resources, with this funding being reflected within Education & Learning; Children, Families & Justice, Economy, Development & Planning, Environment & Infrastructure and Housing & Communities, as additional grant income. The current projected outturn assumes that all these additional resources will be fully expended in 2024/25 or will be carried forward under the terms of the grant award. Page 27 of 132
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11. 2024/25 VIREMENTS Contribution to/from Capital Fund 11.1 In line with the strategy for managing the Council’s Capital Programme over the medium term, it is recommended that the eventual over or under spend on Capital Financing Costs and Interest on Revenue Balances be transferred from or to the Capital Fund. 11.2 The latest monitoring indicates a projected increase in capital financing costs (loan charges) of £1.864 million based on the latest treasury management activity and an increase of £68,000 in income from interest on revenue balances due to rising rates. This will result in a reduced Contribution to the Capital Fund of £1.796 million in the current financial year. 11.3 ACTION: The Committee is requested to approve the virement of £1.864 million to the Capital Financing Costs (Loan Charges) Budget and £68,000 to Interest on Revenue Balances with a corresponding reduction in the projected Contribution to the Capital Fund. These adjustments have been reflected in Appendix 1 (Column 5) to this report. 11.4 At 31 March 2024, the unaudited Annual Accounts included a Capital Fund balance of £31.026 million. The Capital Fund is currently projected to peak in 2024/25 at approximately £37.0226 million, before, on the basis of the approved Council Tax strategy, gradually reducing until being fully utilised in 2060/61. Service Virements 11.5 To ensure that the 2024/25 Management Revenue Budget continues to reflect current Service needs and operational requirements there are several virements that are reflected in Appendix 1 (column 5) that have been processed in line with the Scheme of Administration. 12. 2024/25 MOVEMENTS IN RESERVES 12.1 Included at Appendix 7 is an update on the Council’s General Fund Reserves. The appendix includes the following: • Earmarked and unearmarked Reserves at 31 March 2024 (per unaudited Annual Accounts). • previously approved contributions to and from earmarked Reserves in 2024/25. 2025/26 and 2026/27. • The impact of proposals within this report on earmarked Reserves. • The impact of the latest revenue monitoring on the level of unearmarked Reserves. 12.2 The earmarked Reserves are brigaded under three headings as follows: Page 28 of 132
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i. Balances held under statute / regulation – these earmarked Reserves are prescribed under legislation and the Council has limited discretion in how they are applied. ii. Balances held for specific (previously approved) purposes – the purpose of these earmarked Reserves has been previously approved by Council in either the Reserves Strategy or Annual Accounts iii. Balances held for other purposes – the creation of these earmarked Reserves has been approved by Council, but not specific proposals. 12.3 Going forward proposals involving earmarked Reserves under i. and ii. above will be advised to Committee in summary as Council either has limited discretion or previously approved their application. Proposals to apply earmarked Reserves under iii. above will include more detail for elected member consideration. Balances Held Under Statute / Regulation 12.4 The application of these earmarked Reserves was considered earlier in this report in Section 9. Balances Held for Specific (Previously Approved) Purposes 12.5 Theses earmarked Reserves have previously been approved by elected members in their consideration of the Reserves Strategy or Annual Accounts. The proposals listed below are simply about the transfers in and out of earmarked Reserves to take forward approved proposals. • Contribution to 2024/25 Revenue Budget - £149,000 • Culture - £191,000 • Council Tax Income for Missing Shares Scheme - £48,000 • School Estate - £313,000 • Ventilation Measures - £76,000 • Health & Social Care – Care at Home & Reablement - £800,000 • Health & Social Care – Focussed care and support for those people most at risk of deconditioning leading to hospital or residential care admission - £200,000 Balances Held for Other Purposes 12.6 The Transformation & Workforce Management earmarked Reserve was created to provide the funding required to take forward the Transformation and Change Programme as well as fund the financial implications of workforce changes. 12.7 Approval is sought to transfer £380,000 from the Transformation & Workforce Management earmarked Reserve to ensure completion of several previously approved projects. 12.8 ACTION: The Committee is asked to approve the transfer of £380,000 to the Transformation & Earmarked Reserve with adjustments reflected in Appendix 1 (Column 6) to the report. Page 29 of 132
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12.9 Furthermore, under the Framework for Managing Workforce Change, the authority to approve voluntary severance requests sits with the Executive Leadership Team, except for requests from Chief Officers. With that in mind, approval is sought to draw down £373,000 from the Transformation and Workforce Management earmarked Reserve to fund voluntary severance requests. These voluntary severance request will support the delivery of savings previously approved by Council and payback in less than two years. 12.10 ACTION: The Committee is asked to approve the transfer of £373,000 from the Transformation & Earmarked Reserve with adjustments reflected in Appendix 1 (Column 6) to the report. 12.11 Approval is sought to drawdown funding from the Anti-Poverty earmarked Reserve totalling £330,000. This will augment the Scottish Welfare Fund budget to ensure that the most vulnerable in our area have access to a dignified, cash response to crisis situations. This additional funding will allow the Council to meet the demand of low-income households struggling to meet the rise in cost of living and will allow vulnerable residents to maintain independent living in the community. Furthermore, this funding will allow us to continue to support all P&K residents in crisis and support those on low incomes living rurally. 12.12 ACTION: The Committee is asked to approve the transfer of £330,000 from the Anti-Poverty earmarked Reserve to the Financial Insecurity Fund. This adjustment is reflected in Appendix 1 (Column 6) to the report. 12.13 In 2023/24, Perth & Kinross Council provided funding of £250,000 for the Warm Welcome Fund Initiative. This was a re-brand of the previous years’ Cost of Living Fund. The aim of the funding was to support community groups and organisations in their delivery of the provision of warm spaces and warm home packs over the winter months to help alleviate the cost of living whilst also contributing to a reduction in social isolation. The fund supported 94 projects and the feedback from community groups and recipients was very positive. 12.14 Delivery of the fund in 2024 involved the Community Learning & Development team facilitating workshops within each ward area for groups and organisations committed to providing warm spaces. During the Education Scotland Progress Visit in April 2024 which reviewed our progress in delivering the Community Learning and Development Plan the Warm Welcome Fund was highlighted as a positive example of enabling local people to finding local solutions to inequalities. 12.15 It is proposed that for 2024/25 an allocation of £200,000 will be allocated to the Warm Welcome Fund divided per ward based on population size. Groups and organisations within these areas will be invited to negotiate their specific funding needs in order to implement their proposals. This approach promotes fairness, encourages community collaboration, and minimises the duplication of services across different areas. Page 30 of 132
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12.16 The funding criteria will be updated as follows: • Funding is exclusively for the provision of warm spaces. • Groups and organisations must commit to collaborating with broader services, such as welfare rights, to ensure that the most vulnerable attendees can maximise their incomes, thereby achieving longer-term positive outcomes in addressing poverty. This may involve providing signposting and incorporating support organisations into the warm space programmes. • Warm home packs are not included under this funding. Individuals requiring assistance to stay warm at home should be directed to welfare rights for appropriate support and advice. 12.17 ACTION: The Committee is asked to apply £200,000 from the Anti-Poverty earmarked Reserve to take forward the Warm Welcome Fund Initiative. This adjustment is reflected in Appendix 1 (Column 6) to the report. 12.18 In addition, in setting the 2024/25 Revenue Budget in February 2024, the Council Approved Expenditure to fund several specific initiatives. For a variety of reasons including consultation and capacity issues, there has been slippage in the delivery of a few of these projects that may result in the expenditure not being incurred in the current financial year. Projects totalling £70,000 are set out at Appendix 8. 12.19 Should the Committee confirm that that the projects remain a priority for the Council then the balances set out in Appendix 7 will be transferred to an earmarked Reserve to ensure that the funding is in place to ensure delivery. The final outturn for individual projects may change before the end of the financial year. Therefore, by agreeing the projects within Appendix 8, the Committee is confirming that the initiative remains a priority and that the final under spend will be earmarked within Reserves. 12.20 Should any of the projects no longer be a priority, the projected under spend would be available to support the financial management of the Council in both current and future financial years. 12.21 ACTION: The Committee is asked to confirm that the projects listed in Appendix 8 remain a priority and that the final under spends, currently projected at £70,000 are transferred to an earmarked Reserve to ensure delivery. These adjustments are reflected in Appendix 1 (Column 6) to the report. Local Government By-Elections 12.22 Following resignations over the Summer, by-elections for Ward 7 – Strathallan and Ward 11 – Perth City North will take place on Thursday 26 September 2024. The estimated cost of running these by elections is £80,000. There are economies of scale to the Council from running both events on the same day. Council officers did also investigate whether other Councils were in a position to share the costs of count centre but this did not prove practical. Page 31 of 132
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12.23 ACTION: The Committee is asked to approve the transfer of £80,000 from unearmarked Reserves to Finance & Business Support to fund the two by- elections on Thursday 26 September 2024. This adjustment is reflected in Appendix 1. 13. FINANCIAL RISKS 13.1 In preparing the Council's 2024/25 revenue monitoring, officers have considered the key strategic, operational and financial risks facing the Council over this period. Whilst the risks may be managed in the current financial year, there is the potential for there to be an impact in the future. 13.2 To alleviate the impact these risks may have if they occur, a number of general risk mitigation factors are utilised by the Council which include detailed budget monitoring carried out by Services and having general fund balances available to meet unforeseen expenditure. 13.3 Going forward, new risks will be captured within the body of the report with a summary being maintained in Appendix 8. Budgeted Slippage Targets 13.4 Across all Council Services there is an approved staff slippage target of 5% (excluding teachers). The ability to manage this target is limited in early learning and childcare and school settings due to the requirement to fill all vacancies as they arise. It is also challenging due to the national requirement to maintain the teacher number ratio. Teaching slippage targets are currently not being met across all school settings. Financial Insecurity Funding 13.5 The Council has directed significant levels of non-recurring funding towards the Scottish Welfare Fund and the Financial Insecurity Fund to support vulnerable individuals and families with the cost-of-living pressures in recent years. In addition, the Council has received external funding which it has also directed to provide additional support. 13.6 As things stand, this additional funding will not be available in 2025/26. This may result in the Council having to raise the priority rating for the Scottish Welfare Fund to “high, most compelling”, which would be a first for Perth & Kinross Council. It may result in the provision of less dignified support during times of crisis and push households in crisis to community groups that would struggle to cope with the demand. It may also cut across the ambition of Cash-First. 2024/25 Pay Awards 13.7 The non-teaching pay awards for 2024/25 have not yet settled. The Scottish Government have committed to funding the cost of these pay awards in excess of 3.2% - the Council has budgeted for 3%. There is a likely cost in the current year as well as a risk for future years that the final increases Page 32 of 132
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exceed both the current budgetary provision and external recurring funding made available by the Scottish Government. 13.8 Any shortfall could lead to further pressures on Reserves and / or cuts in service delivery. 13.9 Similarly, the teaching pay awards have not yet been settled and there is a risk that the 3% budgeted for by the Council is insufficient and external Scottish Government support will be required. Tayside Contracts 13.10 There is a risk that the Council is required to provide additional funding for Tayside Contracts to contribute towards higher inflation costs, reduced demand for school meals and a pay award that exceeds budgeted levels. Funding 13.11 The 2024/24 Revenue Budget includes two material funding assumptions. Firstly, that the funding for teachers’ superannuation contributions (employer) flows from the UK Government to the Scottish Government through to the Council. Secondly, that the Council meets the requirements to maintain the pupil teacher ratio and therefore grant is not withheld. 14. CONCLUSION 14.1 Based on the June 2024 ledger, a projected over spend of £1.608 million has been identified in the current financial year. 14.2 This level of projected over spend will result in a reduction in the level of unearmarked Reserves to £14.773 million or 3.2% (see Appendix 7). 14.3 The financial position of the Council and its partners including the Health & Social Care Partnership and the ALEOs remains challenging and regular updates will be provided to the Council and the Finance & Resources Committee as the position develops. APPROVED Name Designation Date Scott Walker Chief Finance Officer 10 September 2024 Page 33 of 132
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement None Corporate Plan Yes Resource Implications Financial Yes Workforce Yes Asset Management (land, property, IST) Yes Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Corporate Plan 1.1 The Council’s Corporate Plan 2022 – 2027 lays out seven outcome focussed strategic objectives which provide clear strategic direction, inform decisions at a corporate and service level and shape resources allocation. They are as follows: • Tackling poverty • Tackling climate change and supporting sustainable places • Growing a sustainable and inclusive local economy • Enabling our children and young people to achieve their full potential • Protecting and caring for our most vulnerable people • Supporting and promoting physical and mental wellbeing • Placing communities at the heart of how we work 1.2 This report relates to all these objectives. 2. Resource Implications Financial 2.1 There are no direct financial implications arising from this report other than those reported within the body of the main report. Page 34 of 132
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Workforce 2.2 There are no direct workforce implications arising from this report other than those reported within the body of the main report. Asset Management (land, property, IT) 2.3 There are no direct asset management implications arising from this report other than those reported within the body of the main report. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 The information contained within this report has been considered under the Corporate Equalities Impact Assessment process (EqIA) and has been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.4 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Sustainability 3.5 Under the provisions of the Local Government in Scotland Act 2003 the Council must discharge its duties in a way which contributes to the achievement of sustainable development. In terms of the Climate Change Act, the Council has a general duty to demonstrate its commitment to sustainability and the community, environmental and economic impacts of its actions. 3.6 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. 4. Consultation Internal 4.1 The Strategic Leadership Team have been consulted in the preparation of this report. Page 35 of 132
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2. BACKGROUND PAPERS 2.1 No background papers, as defined by Section 50D of the Local Government (Scotland) Act 1973 (other than any containing confidential or exempt information) were relied on to any material extent in preparing the above report. 3. APPENDICES Appendix 1 – 2024/25 Management Budget Appendix 2 – General Fund 2024/25 Projected Outturn – Service Analysis Appendix 3 – Perth & Kinross IJB 2024/25 outturn Appendix 4 – Revenue Grants Appendix 5 – Housing Revenue Account 2024/25 Projected Outturn Appendix 6 – Other Fundings Appendix 7 – General Fund Balances Appendix 8 – Council Approved Projects 2024/25 Appendix 9 – Financial Risks Page 36 of 132
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(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 2024/25 Previously Issues Movements Virements Movements 2024/25 Projected Variance Variance Council Approved Arising in in Revised Outturn to to Approved Adjustments From Funding Reserves Mgt Revised Revised Budget (Net) 2023/24 Budget Mgt Mgt Accounts Budget Budget £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 % SECTION 1 Service Budgets Education & Learning 166,774 (3,605) 1,626 472 (50) 131 165,348 166,221 873 0.5% Children, Families & Justice 25,284 5 1,300 26,589 26,589 0 0.0% Economy, Development & Planning 13,925 593 2,646 193 17,357 17,357 0 0.0% Environment & Infrastructure 34,642 110 146 34,898 34,898 0 0.0% Housing & Communities 17,878 250 2,233 178 20,539 20,529 (10) (0.0%) Property Services 65,471 115 5 462 66,053 66,739 686 1.0% Legal & Governance 4,381 142 50 4,573 4,613 40 0.9% Customer & Digital Services 10,302 958 347 11,607 11,794 187 1.6% Strategic Planning, People & Performance 5,948 1,166 62 7,176 7,132 (44) (0.6%) Projects & Programmes 131 178 309 309 0 0.0% Finance & Business Support 8,227 331 50 80 8,688 8,338 (350) (4.0%) Directorate Core Costs 1,003 373 1,376 1,396 20 1.5% Sub - Total: Service Budgets 353,966 65 7,956 472 0 2,054 364,513 365,915 1,402 0.4% SECTION 2 Corporate Budgets Health & Social Care 87,498 6,764 138 1,102 95,502 95,502 0 0.0% Contribution to Valuation Joint Board 1,466 1,466 1,466 0 0.0% Capital Financing Costs 16,628 1,864 18,492 18,492 0 0.0% Interest on Revenue Balances (5,411) (68) (5,479) (5,479) 0 0.0% Net Contribution to/(from) Capital Fund 6,710 (1,796) 4,914 4,914 0 0.0% Contribution to/(from) Insurance Fund 200 200 200 0 0.0% Trading Operations Surplus (550) (550) (550) 0 0.0% Support Service External Income (2,238) (2,238) (2,238) 0 0.0% Tayside Pension Fund 1,655 1,655 1,711 56 3.4% Apprenticeship Levy 956 956 956 0 0.0% Leadership and procurement targets (1,505) (1,505) (1,505) 0 0.0% Council Tax Reduction Scheme 7,400 7,400 7,550 150 2.0% Discretionary Relief 1,104 1,104 1,104 0 0.0% Net Expenditure (General Fund) 467,879 6,829 8,094 472 0 3,156 486,430 488,038 1,608 0.33% SECTION 3 Funding Revenue Support Grant (275,985) (4,266) (1,042) (281,293) (281,293) 0 0.0% Ring Fenced Grant (3,806) (3,806) (3,806) 0 0.0% Non Domestic Rate Income (65,152) (203) (65,355) (65,355) 0 0.0% Council Tax Income (107,517) (107,517) (107,517) 0 0.0% Capital Grant (1,600) (139) (1,739) (1,739) 0 0.0% Total Financing (454,060) (4,608) 0 (1,042) 0 0 (459,710) (459,710) 0 0.0% Financed from/(returned to) Reserves 13,819 2,221 8,094 (570) 0 3,156 26,720 28,328 1,608 PERTH & KINROSS COUNCIL GENERAL FUND 2024/25 REVENUE BUDGET - SUMMARY APPENDIX 1 5 Page 37 of 132
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APPENDIX 2 PERTH & KINROSS COUNCIL - GENERAL FUND 2024/25 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 30 June 2024) Variance Variance £'000 £'000 EDUCATION & LEARNING Total 873 NON DEVOLVED Education & Learning Core (5) Staff slippage over and above budgeted target due to delay in filling post. Nursery Sector (677) Projected additional slippage due to turnover of staff and lower than anticipated staffing required for deferred places. Primary Sector 1,484 Slippage target currently not being met within primary sector partly due to Scottish Government directive of maintaining teacher numbers and the requirement to have a teacher in front of class at all times. Secondary Sector 80 Projected overspend due to slippage target currently not being met and increased loan charges. Special Sector (303) Additional slippage due to turnover of staff and challenges in recruitment of posts in particular Pupil Support Assistants. 294 Projected overspend on Residential placements due to increased number of placements. Average placements 23/24 = 17.25 24/25 =23. Home to School Transport 0 No material variances at present DEVOLVED SCHOOL MANAGEMENT SCHEME (DSM) 0 The projected position for DSM is on budget at this time. Schools are finding slippage targets and increasing costs challenging to manage. This has been impacted by the Scottish Government freeze on teacher numbers and per capita budgets allocations have not increased since a 25% reduction was agreed in 2016/17. Inflation has risen by 37% in the same period. PUPIL EQUITY FUND 100 At this time £100,000 is projected to be carried forward into 2025/26 for teacher and support staff costs to the end of the current academic year. (100) Projected carry forward of Pupil Equity Funding. CHILDREN, FAMILIES & JUSTICE Total 0 Children & Families 87 Projected overspend in staffing due to not meeting slippage target offset by additional income for Children Alone Seeking Asylum placements and Wellbank. (331) Projected under spend on foster, kinship and adoption in part due to reduction external in foster carers. 244 Projected over spend on residential placements due to an additional three in excess of budget until December 2024. 0 Justice Service No material variances at present ECONOMY DEVELOPMENT & PLANNING Total 0 No material variances at present ENVIRONMENT & INFRASTRUCTURE Total 0 No material variances at present HOUSING & COMMUNITIES Total (10) Service Wide (75) Projected slippage across Housing & Communities in excess of slippage target Housing General Fund 15 Void rent loss for housing support properties 35 Projected increase in homeless costs including bad debts and energy costs. Bereavement Services 15 Projected over spend on loan charges SERVICE Summary of Service Variances 5 Page 39 of 132
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APPENDIX 2 PERTH & KINROSS COUNCIL - GENERAL FUND 2024/25 PROJECTED OUTTURN - SERVICE ANALYSIS (Based on Expenditure to 30 June 2024) Variance Variance £'000 £'000SERVICE Summary of Service Variances PROPERTY SERVICES Total 686 Service Wide 223 Projected shortfall against slippage target 311 Projected shortfall due to delays in delivering the Pullar House mothballing saving partially offset by an under spend on water. (7) Projected various under / over spends on supplies & services, third party payments and capital financing costs. (101) Projected additional income from capital recharges (£94,000) & commercial lets (£82,000) partially offset against a shortfall in RHI Income (£75,000). Energy (300) Projecting reduced energy costs due to reduced rates and consumption Maintenance 150 Projecting increased costs associated with the transfer of Bell's sports centre Facilities Management 240 Delay in implementing new cleaning schedule required to achieve £406,000 Tayside Contract approved saving. This was due to the requirement to consult with trade unions. Implemented reduced cleaning days for schools from August 2024. Catering 170 Increased uptake on meals projected at an additional 64,000 by year end. This includes a 10% uplift in nursery meals (total meals projected 2.1 million for full year). This equates to approx £120,000 shortfall based on the average price of £4.36 per meal (was previously £4.74) against the cost charged to the pupil of £2.25 for a Primary meal & £2.60 for a secondary meal. The additional variance is the increased uptake of free school meals. LEGAL & GOVERNANCE Total 40 140 Projected shortfall against slippage (15) Projected under spend on supplies & services (85) Projected additional income across Legal & Governance CUSTOMER & DIGITAL Total 187 (10) Projected net under spend on staff costs 64 Projected over spend on supplies & services including printing & interpretor services 133 Projected shortfall due to increased Service Charges from Social Housing Providers that are not covered by Housing Benefit Subsidy STRATEGIC PLANNING, PEOPLE & PERFORMANCE Total (44) (44) Projected net under spend on staff costs, supplies & services and income. PROJECTS & PROGRAMMES Total 0 0 No material variances at present FINANCE & BUSINESS SUPPORT Finance Total (350) 17 Projected net overspend on staff costs, supplies & services and income. Business Support (367) Projected under spend on staff costs due to non-filling of vacancies in advance of delivering 2025/26 approved savings. DIRECTORATE CORE COSTS Total 20 20 Projected over spend on contribution to Tayside Valuation Joint Board TOTAL 1,402 Page 40 of 132
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APPENDIX 3 Perth & Kinross Integration Joint Board (IJB) Projected outturn based on Revenue Monitoring to 30 June 2024 Social Care Health Health & Social Care Partnership £'000 £'000 £'000 Sub Total - PKHSCP 4,647 3,488 8,135 Approved Use of General Reserves in 2024/25 (1,286) (158) (1,444) Care at Home Transformation Funding (800) 0 (800) Approved earmarked Reserves 2024/25 0 (884) (884) Total Projected Outturn PKHSCP 2,561 2,446 5,007 Remaining General Reserves Available (2,561) (644) (3,205) Projected Deficit (Month 3) 0 1,802 1,802 Projected Out-turn Over / (Under) Spend 5 Page 41 of 132
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APPENDIX 4 Revenue Grants Education & Learning Ukrainian children £511,000 Education Recovery £90,000 Early Years 1140 hours £393,000 Early Years Milk and Snack £115,000 Other Grants £255,000 Children, Families & Justice Whole Family Wellbeing £1,114,000 Care Experienced Children and Young People £156,000 Other Grants £30,000 Economy, Development & Planning UK Shared Prosperity Fund £1,282,000 Place Based Investment Programme £455,000 NOLB Employability £741,000 Other Grants £192,000 Environment & Infrastructure Residential Cycle Storage & Parking Fund £143,000 Other Grants £3,000 Housing & Communities Homes for Ukraine £950,000 Ukraine Resettlement £756,000 Community Resilience £157,000 Other Grants £346,000 Property Services Other Grants £5,000 Health & Social Care Other Grants £138,000 TOTAL £7,832,000 5 Page 43 of 132
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APPENDIX 5 PERTH & KINROSS COUNCIL - HOUSING REVENUE ACCOUNT 2024/25 PROJECTED OUTTURN (Based on expenditure to 30 June 2024) £'000 93 Housing Repairs Projected over spend on energy costs (£40,000) and transport costs (£53,000) (50) Administration Projected slippage across HRA in excess of slippage target. (250) Income Projected increased income for Interest on Revenue Balances. 207 Capital Financed from Current Revenue As a result of the projected net under spends highlighted above, this is the increase in the amount available to invest in the HRA capital programme from the Revenue Budget. 0 Summary of Service Variances 5 Page 45 of 132
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APPENDIX 6 Other Grant Funding Education & Learning Scottish Government – Scottish Milk and Healthy Snack Scheme £376,430 Children, Families & Justice Scottish Government - Justice Social Work Post Pandemic Recovery Work £311,396 Gannochy Trust – Universal Youth Service Partnership £173,651 Economy, Development & Planning UK Government – UK Shared Prosperity Fund £3,356,783 Scottish Government – No One Left Behind 24-25 £1,843,000 Scottish Government – Delivery of Rural Community Led Local Development Funding 24- 25 £457,250 Scottish Government – Heat Network Support Unit £100,000 Innovate UK – Pathfinder Net Zero Living £53,314 Environment & Infrastructure Bus, Accessibility & Active Travel – Direct Resource Grant £120,404 Housing & Communities UK Government – Homes for Ukraine £242,200 Scottish Government – Local Air Quality Management £108,295 Scottish Government – Air Quality Resource Grant £83,003 TOTAL £7,225,726 5 Page 47 of 132
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Appendix 7 General Fund Reserves Update Proposals Included in Report Proposals Included in Report Commit- ments 31/3/24 24/25 25/26 26/27 24/25 Future Balance £m £m £m £m £m £m £m £m General Fund Balance 83.793 Balances Held Under Statute / Regulation - Service Concessions (17.262) 7.000 10.262 0.000 - Revenue Grants (17.337) 0.100 7.832 (9.405) - Council Tax Income for affordable housing (5.609) 0.157 (0.283) (0.283) 0.048 (5.970) - Developers Contributions: Affordable Housing (5.237) (5.237) - Car Parking (1.532) 0.120 0.030 (1.382) - Developers Contributions: Commuted Sums (1.218) (1.218) - Devolved School Management (0.501) 0.239 0.262 0.000 Sub total (48.696) 7.616 (0.283) (0.283) 8.142 0.000 10.292 (23.212) Balances Held for Specific (Previously Approved) Purposes - Services for Children, Young People & Families (0.281) 0.281 0.000 - School Estate (2.164) 1.589 0.313 (0.262) - Culture (0.857) 0.370 0.191 0.025 (0.271) - School Counsellors (0.329) 0.227 0.102 0.000 - Works Maintenance (0.200) (0.200) - Modern Apprentice Scheme (0.367) 0.340 0.027 0.000 - Project Feasibility Fund (Covid-19) (0.081) 0.040 (0.041) - Cemetery Walls (0.262) 0.076 0.076 0.074 0.036 0.000 - PH20 (0.062) 0.062 0.000 - Working Smarter (Covid-19) (0.115) 0.115 0.000 - Community Resilience (0.175) 0.039 (0.136) - Climate Change (0.205) 0.110 (0.095) - Ventilation Measures (0.076) 0.076 0.000 - Salix (0.102) 0.102 0.000 Approved Contributions from / (to) Reserves 5 Page 49 of 132
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Appendix 7 General Fund Reserves Update Proposals Included in Report Proposals Included in Report Commit- ments 31/3/24 24/25 25/26 26/27 24/25 Future Balance £m £m £m £m £m £m £m £m Approved Contributions from / (to) Reserves - Local Area Partnerships (0.046) 0.046 0.000 - Community Investment Fund (0.087) 0.087 0.000 - Local Government Elections (0.053) (0.053) (0.053) (0.053) 0.212 0.000 - Financial Assistance (Mod) (0.020) (0.020) (0.020) (0.020) (0.080) - Council Approved Expenditure (1.635) 1.127 0.059 0.129 (0.320) - Feasibility 0.000 (0.100) (0.100) (0.100) (0.300) Sub total (7.117) 4.062 0.005 (0.173) 0.775 0.000 0.743 (1.705) Balances Held for Other Purposes 0.000 - Transformation & Workforce Management (7.606) 1.538 0.860 0.953 (4.255) - Anti - Poverty (1.664) 0.575 0.235 0.300 0.070 (0.484) Sub total (9.270) 2.113 1.095 0.000 1.253 0.000 0.070 (4.739) Earmarked Reserves (65.083) 13.791 0.817 (0.456) 10.170 0.000 11.105 (29.656) Uncommitted General Fund Balance 18.710 Use of unearmarked Reserves in setting Budgets (2.249) (25/26 £(0.503m); 26/27 £2.476m Impact of Current Year Projected Outturn (1.608) Impact of Current Year Decisions (0.080) Updated Uncommitted General Fund Balance 14.773 Percentage of Net Revenue Budget 3.2% Page 50 of 132
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APPENDIX 8 Council Approved Projects - 2024/25 Housing & Communities Intensive Housing Support £70,000 Total £70,000 5 Page 51 of 132
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Appendix 9 FINANCIAL RISKS Risk to Revenue Budget Mitigation 1 Achievement of staff slippage targets, particularly relating to teacher numbers and impact on pupil / teacher ratio - Proactive workforce management - Revenue monitoring - Future budget submissions 2 Ceasing of additional Financial Insecurity Funding on 31 March 2024. - Proactive management - Revenue monitoring - Future budget submissions 3 Current year pay awards - Revenue monitoring - Future budget submissions 4 Support for Tayside Contracts - Tayside Contracts Governance & Strategy Group - Revenue monitoring - Future budget submissions 5 Funding - Pupil Teacher Ratio - Liason with COSLA 5 Page 53 of 132
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PERTH & KINROSS COUNCIL Finance & Resources Committee 18 September 2024 COMPOSITE CAPITAL BUDGET 2024/30 & HOUSING INVESTMENT PROGRAMME 2024/29 – MONITORING REPORT No.1 Report by Chief Finance Officer (Report No. 24/261) 1. PURPOSE 1.1 This report provides a summary position to date for the 6-year Composite Capital Budget for 2024/25 to 2029/30 and the 5-year Housing Investment Programme for 2024/25 to 2028/29 and seeks approval for adjustments to the programmes. 2. RECOMMENDATIONS 2.1 It is recommended that the Committee: (i) notes the contents of the report. (ii) approves the proposed adjustments to the six-year Composite Capital Budget 2024/25 to 2029/30 set out in Sections 5 and 6 of the report and summarised in Appendices I and II. (iii) approves the proposed adjustments to the Housing Investment Programme Budget 2024/25 to 2028/29 set out in Section 7 of the report and summarised in Appendix III. (iv) notes progress with the delivery of major Capital projects as summarised in Appendix IV. 3. STRUCTURE 3.1 The report is structured over the following sections: • Section 4: Background / Main Issues • Section 5: Composite Capital Programme – Gross Capital Resources • Section 6: Composite Capital Programme – Expenditure • Section 7: Housing Investment Programme • Section 8: Summary 4. BACKGROUND / MAIN ISSUES 4.1 At its meeting on 28 February 2024, the Council approved a revised Composite Capital Budget for the 6 years 2024/25 to 2029/30 (Report 24/64 refers). This Committee subsequently approved a revised budget at its meeting on 24 April 2024 (Report 24/131 refers) for the years to 2027/28. This monitoring report now incorporates the approved Composite Capital Budgets for 2028/29 and 2029/30, and the total gross budget approved for the 6 years 6 Page 55 of 132
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from 2024/25 totalled £591.848 million. This report also incorporates the Housing Investment Programme for 2028/29 approved by the Housing and Social Wellbeing Committee on 24 January 2024 (Report 24/24 refers), giving a total gross budget for 2024/25 to 2028/29 of £97.0 million. 4.2 This report advises on expenditure to 31 July 2024, and the latest estimate of the projected outturn for each of the years to 2029/30 for the Composite Programme and 2028/29 for the Housing Investment Programme. 5. COMPOSITE CAPITAL PROGRAMME – GROSS CAPITAL RESOURCES 5.1 As a result of the latest monitoring exercise, further adjustments to the budget are proposed. The current estimated total gross capital resources (which includes movements in Capital Receipts, Capital Grants, Contributions and borrowing) available over the six years 2024/25 to 2029/30 amount to £619.172 million. 5.2 Movements from the revised Composite Capital Budget approved on 24 April 2024 for the six years are summarised in the table below, and the constituent elements for each year are shown in Appendix I. Total Gross Composite Capital Resources Approved 24 April 2024 Current Estimate Movement £m £m £m 2024/25 201.068 174.999 (26.069) 2025/26 90.913 113.301 22.388 2026/27 106.406 134.107 27.701 2027/28 122.414 84.890 (37.524) 2028/29 37.039 64.097 27.058 2029/30 34.008 47.778 13.770 Total 591.848 619.172 27.324 5.3 The above movements can be summarised as follows: B/f from 2023/24 Current Monitoring Total £m £m £m Increase in Grants (Section 5.4) 2.341 0.727 3.068 Increase/(Reduction) in Receipts (Section 5.5) (0.594) 0.029 (0.565) Increase in Receipts carried forward to future years (Section 5.5) 0.230 0.000 0.230 Increase in Revenue, Third Party, Developers & Tay Cities Contributions (Section 5.6) 1.389 0.347 1.736 Increase in Borrowing Requirement (Section 5.7 and 5.8) 8.509 14.346 22.855 Increase in Gross Capital Resources (Section 5.2) 11.875 15.449 27.324 5.4 Within the table above, £11.875 million of the total increase of £27.324 million was budgeted in 2023/24 but was not applied and has therefore been Page 56 of 132
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carried forward and is available in the current 6-year programme. The increase in Gross Capital Resources in respect of the current monitoring exercise is £15.449 million and is detailed in the following sections. 5.5 There has been some movements in Capital Grants across the 6-year programme which are summarised below: • The ring-fenced grant for Cycling Walking & Safer Streets Grant has been removed by the Scottish Government and replaced with Active Travel Grant as part of the General Capital Grant. The Council has been allocated £739,000 in 2024/25, and it has been assumed that this will continue in future years, with £600,000 each year assumed at this stage. It is proposed that these are added to the General Capital Grant along with corresponding expenditure budgets, and these have been included in Appendix II. • The General Capital Grant settlement for 2024/25 also includes £175,000 for Nature Restoration, and it is also proposed to allocate this to a corresponding expenditure budget. • The General Capital Grant allocation for 2026/27 for flooding has been increased by £647,000 in line with the increased grant for the Comrie Flood Protection Scheme (section 6.2.4). • The final amount of General Capital Grant in 2023/24 was £1.859 million lower than budgeted, relating to Free School Meals. Further, the final settlement for 2024/25 was £111,000 lower than originally expected. In total, these have reduced the grant available in current 6- year programme by £1.97 million. 5.6 General Fund receipts of £685,000 which had been expected to conclude in 2024/25 were received in 2023/24, which reduces the receipts now anticipated to be received in 2024/25. In addition, revised estimates of future receipts have increased the overall total by £30,000 over the programme. There were similar small movements in Commercial Property and Ring- Fenced between 2023/24 and the current programme. Further, with reduced expenditure on the Commercial Property Investment Programme, there is an increase of £230,000 in receipts carried forward to future years. 5.7 Movements in Revenue, Third Party and Tay Cities Deal Contributions mostly relate to brought-forward adjustments between amounts received in 2023/24 and 2024/25. 5.8 The projected borrowing requirement in 2024/25, which is effectively the balancing item for resources, is £141.318 million. This is £28.605 million lower than the borrowing requirement approved by this Committee on 24 April 2024. 5.9 The total borrowing requirement in the subsequent years 2025/26 to 2029/30 has increased by £51.460 million to £343.482 million, resulting in an overall increase of £22.855 million in the total level of borrowing across the whole 6- Page 57 of 132
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year programme. As shown in the table at Section 5.3, of this total, £8.509 million relates to borrowing brought forward from 2023/24, leaving £14.346 million relating to new borrowing. This new borrowing is summarised as follows: 2024/25 2025/26 2026/27 Later Years Total £m £m £m £m £m Reduction in Capital Grants (Section 5.4) 1.970 0 0 0 1.970 Increase in General Fund Capital Receipts (Section 5.5) (0.030) 0 0 0 (0.030) Increase in Borrowing on Comrie Flood Protection Scheme (Section 6.2.4) 0 0 0.162 0 0.162 Reduction in Prudential Borrowing (net) – Environment & Infrastructure (Section 6.2.6) (0.003) 0 0 0 (0.003) Reduction in Prudential Borrowing (net) – Housing & Communities (Appendix II) (0.003) 0 0 0 (0.003) Increase in Prudential Borrowing on Property Service Management (Section 6.4.6) 0 12.250 0 0 12.250 Movements arising from re- phasing of expenditure and receipts (Appendix II) (39.048) 9.951 26.743 2.354 0.000 Increase/(Reduction) in Borrowing Requirement (37.114) 22.201 26.905 2.354 14.346 5.10 The chart below shows the Capital Resources required to fund the 2024/25 Composite Capital Programme following the proposed budget adjustments detailed in this report. 80.8% 14.4% 0.5% 2.1% 0.6% 1.6% 4.9% Projected Capital Resources 2024/25 (August 2024) Borrowing (£141.318M) Grants (£25.163M) Tay City Deal (£0.950M) Developer Contributions (£3.707M) Third Party & Revenue Contributions (£1.101M) Receipts (£2.760M) £Million Page 58 of 132
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6. COMPOSITE CAPITAL PROGRAMME – EXPENDITURE 6.1 Total Expenditure and Proposed Budget Adjustments to the Current Programme 6.1.1 Total expenditure (net of grants and contributions) to 31 July 2024 on the Composite Capital Programme is detailed in Appendix II and summarised as follows: Projected Outturn (£m) Net Expenditure to 31 July 2024 (£m) % of Projected Outturn Environment & Infrastructure 37.485 8.845 24% Housing & Communities 2.852 0.072 3% Economy, Development & Planning 54.439 12.426 23% Property Services 68.197 19.313 28% Customer & Digital Services 8.038 0.634 8% Health & Social Care 0.962 0.202 21% Total Net Capital Expenditure 171.973 41.492 24% 6.2 Environment & Infrastructure 6.2.1 The Strategic Lead has reviewed the programme for Environment & Infrastructure and proposed various budget adjustments, the most significant of which are described below. 6.2.2 Following closure of the previous year accounts, various adjustments are proposed to align to actual income and expenditure as follows: - School Road Safety Measures – following additional income from Scottish Government and Tactran in 2023/24 of £110,000, the expenditure budget in the current year has been increased. - Car Parking Investment – the actual costs for Car Parking Investment in the previous year were £43,000 higher than anticipated and this has been funded by an additional revenue contribution from the Car Park Trading Account. - Almondbank Flood Protection Scheme – the project has been completed with the final cost for 2023/24 being £183,000 greater than budget, which has been met by a Revenue Contribution. 6.2.3 Within Traffic & Road Safety, confirmation has been received from the Scottish Government that Cycling Walking and Safer Routes (CWSR) is to be replaced by a new Active Travel Grant. Appendix II has been updated to reflect this change with the removal of the remaining budget for CWSR and the incorporation of Active Travel Grant of £739,000 in the current year and an estimated £600,000 in each future year, which is included with the General Capital Grant estimates. In addition, Car Parking Investment in Pitlochry is scheduled to progress this year with an estimated cost increase of £55,000 which will be met by a Revenue Contribution from the Car Park Trading Account. Page 59 of 132
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6.2.4 Within Rural Flooding, following completion of the tender exercise for the works, the anticipated costs of the Comrie Flood Scheme Project have increased by £809,000. The Scottish Government have confirmed grant funding of 80% towards this increase in costs, contributing an additional £647,000. In order for the Council to meet its share of the cost increase, it is proposed that borrowing is increased by £162,000. The increased cost and additional grant have been added to the budget in 2026/27. 6.2.5 The following rephasings of budgets are also proposed: Project 2024/25 £m 2025/26 £m Later Years £m Description Structural Maintenance 1.000 (0.200) (0.800) Acceleration of £1m into the current year, spread equally from future years, to progress works on Stuart Tower Road. Bridge Refurbishment Programme (0.337) 0.337 0.000 Moved from the current year to next due to resourcing issues within the team. Old Perth Bridge 0.059 0.059 0.000 Acceleration of budget to match anticipated spend on the initial strengthening works. A977 Upgrades (0.177) 0.177 0.000 Following previous upgrades to the A977, the remaining budget was previously earmarked for junction realignment. It has been determined this is unlikely to improve the safety of the road, and as such, investigations are underway to assess other road safety measures likely to have a greater impact. Flood Mitigation Measures – Dunkeld and Craigie Burn (0.992) 0.072 0.920 When approved in February 2024, the £1m budget for Dunkeld and Cragie Burn Flood Mitigation was allocated to 2024/25. The rephasing in this report aligns the budget to the anticipated timeframe in which the work can be undertaken. 6.2.6 In addition, within Environment & Infrastructure, as detailed in section 5.4 the General Capital Grant includes an amount of £175,000 towards Nature Restoration which has been reflected in the budget for the current year. There is also a small adjustment relating to Smart City Waste under Prudential Borrowing relating to completion of the programme last year, resulting in a reduction in borrowing in the current year of £3,000. 6.2.7 All the above proposed adjustments, together with other small movements, have been reflected in Appendices I & II. 6.3 Economy, Development & Planning 6.3.1 The Strategic Lead has reviewed the programme for Economy, Development & Planning and proposed the following budget adjustment. 6.3.2 Within Other Planning Projects, the expenditure likely to be incurred in the current year on the Perth Eco-Innovation Park is for design works only. Accordingly, it is proposed that £23.020 million is rephased from 2024/25, Page 60 of 132
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with £720,000 allocated to next year and £22.300 million to 2026/27. This adjustment has been reflected in Appendix II. 6.4 Property Services 6.4.1 Within Project Support, following completion of the projects at Breadalbane Academy and Letham Primary, it is proposed the remaining total budgets totalling £60,000 are returned to Investment in the Learning Estate (IILE). In addition, it is proposed that the IILE budget is updated as follows: Project 2024/25 £m 2025/26 £m Later Years £m Virement £m Description Investment in Learning Estate (IILE) (8.500) 4.500 0.000 (4.000) Transfer of £4m to Methven Primary Refurbishment and moving £4.5m of the budget to next year on IILE Methven Primary Refurbishment 0.200 3.500 0.300 4.000 Draw down of funding from Investment in Learning Estate towards the new gym hall and dining facilities at Methven Primary School. 6.4.2 Also within Project Support the following rephasings are proposed: Project 2024/25 £m 2025/26 £m Later Years £m Description Perth Grammar School – Upgrade Programme (0.984) 0.000 0.984 Limited upgrades are planned for the remainder of the current year, and with sufficient budget for works planned next year, it is proposed £984,000 of the budget is slipped into 2026/27. Perth High School – New School Investment 4.000 (4.000) 0.000 With works progressing at pace on site, a revised profile has been provided by the contractor for the level of works to be completed this financial year. In line with the reprofiling of spend it is proposed £4m is accelerated from next year. Blairgowrie Recreation Centre - Replacement 2.700 (2.700) 0.000 Phase 1 of the project is on course for completion this calendar year and in line with the anticipated spend profile for the remainder of the financial year it is proposed £2.7m is accelerated from next year. Technology Upgrades (1.119) 0.559 0.560 Difficulties have been encountered in gaining access to schools whilst maintaining the learning environment to carry out Technology Upgrades. Due to this and the limited accessibility potential for the remainder of the financial year, it is proposed that the remaining budget is moved equally to next year and 2026/27. Page 61 of 132
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6.4.3 This Committee has previously approved the extension and redevelopment of Pitlochry High School gym and games hall facilities at an estimated cost of £8.7 million at its meeting on 12 June 2024 (Report 24/186 refers), to be funded from the reprioritisation of the existing Investment in Learning Programme. The detailed programme of works is currently being developed, and reprofiling of the budget for the project will be incorporated into the next monitoring report to this committee in November 2024. 6.4.4 Within Projects & Contracts, feasibility work is ongoing for the Free School Meal Expansion Programme with no capital expenditure expected in the current year. It is therefore proposed that the budget is rephased, with £1 million to next year and £2.135 million to 2026/27. 6.4.5 Within Property Service Management, following the completion of building condition surveys, it is proposed that £250,000 is accelerated from 2027/28 on the Property Compliance Works Programme in line with planned compliance works to be completed in the current year. Following the acceleration of the Property Compliance budget last year to allow initial works on the Friarton Depot Waste Transfer Station to be progressed at that time, it is now proposed that the cost of these works of £219,000 is reinstated from the Friarton Depot Waste Transfer Station budget to Property Compliance in the current year. It is also proposed to rephase a further £1.781 million to 2025/26 on the Friarton Depot project as the programme of works is developed. In addition, it is proposed to move £2.795 million for Perth Art Gallery to 2025/26 with only limited expenditure anticipated for this year. 6.4.6 At its meeting on 4 September 2024 (Report 24/242 refers) the Council approved various actions under the Perth City Integrated Investment Proposal. This included the purchase of Pullar House and Kinnoull Street Car Park at the end of the PFI Agreement in September 2025 to be funded by Prudential Borrowing. These have now been included in the Capital Budget at Appendix II within the Property Service Management programme. 6.4.7 All the above proposed adjustments, together with other small movements, have been reflected in Appendices I & II. 6.5 Customer & Digital Services 6.5.1 Within Customer & Digital Services, the requirement for a replacement Legal Case Management system has been identified due to the age of the current system and the risks associated with its failure. It is proposed that £80,000 is vired from the ICT Infrastructure Replacement and Upgrade Programme towards this project. 6.5.2 Additionally within Customer and Digital Services, the following rephasings are proposed: Page 62 of 132
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Project 2024/25 £m 2025/26 £m Later Years £m Description ICT Infrastructure Replacement & Upgrade Programme (1.789) 0.485 1.304 Budget rephased. Microsoft licence negotiations for 2024 were delayed nationally, allowing PKC renewal costs to be kept at 2021 prices. However future year increases will likely be higher. Data & Analytics (0.260) 0.260 0.000 Anticipated spend to be £260,000 less than budget in the current year. It is therefore proposed the balance is transferred to next year. Supporting Digital (0.248) 0.248 0.000 Anticipated spend to be £248,000 less than budget in the current year. It is therefore proposed the balance is transferred to next year. Mosaic – Swift Social Work System Replacement Revenue Contribution (0.095) 0.009 0.084 0.002 (0.011) 0.011 Implementation of Mosaic Social Work System is ongoing and the budget rephasing aligns with works required as the rollout progresses. There have also been minor reductions in the Revenue Contributions available on the project. 6.5.3 All the above proposed adjustments have been reflected in Appendices I & II. 6.6 Health & Social Care 6.6.1 Within Technology Enabled Telecare, the number of peripheral devices required to be replaced are less than initially anticipated as some existing devices are compatible with the new digital service. Economies of scale have also been realised due to bulk purchasing. Therefore, it is proposed that £1 million is rephased to 2028/29, to reflect the current expenditure profile. 6.6.2 The budgets for Developing Supported Tenancies and Moving & Handling Office Refurbishment are not expected to be progressed in the current year and it therefore proposed that the budgets are moved to next year. 6.6.3 All the above proposed adjustments, together with other small movements, have been reflected in Appendix II. 7. HOUSING INVESTMENT PROGRAMME 7.1 The total current estimated expenditure, net of contributions, for the Housing Investment Programme over the 5 years 2024/25 to 2028/29 amounts to £96.917 million. This has reduced by £83,000 from the approved revised Housing Investment Programme by this Committee on 24 April 2024. This reduction relates entirely to increased expenditure in 2023/24, which reduces expenditure in the current programme by a corresponding amount. Movements from the previous estimates are summarised in the table below and detailed in Appendix III. Page 63 of 132
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Approved 24 April 2024 Current Estimate Movement £m £m £m 2024/25 21.536 27.818 6.282 2025/26 19.942 20.256 0.314 2026/27 15.633 15.633 0.000 2027/28 19.845 19.845 0.000 2028/29 20.044 13.365 (6.679) Total 97.000 96.917 (0.083) Total Expenditure to 31 July 2024 (Housing Investment Programme) 7.2 Net expenditure for 2024/25 to 31 July 2024 amounts to £7.679 million and receipts amount to £5,000. Therefore, the borrowing requirement for the year to date is £7.674 million. 7.3 The Strategic Leads for Housing & Communities and Property Services have reviewed the Housing Investment Programme and proposed the budget adjustments outlined below. 7.4 There are several small adjustments on the House New Build Programme reflecting schemes that were completed in 2023/24, which amount to an overall net reduction of £12,000. These adjustments include the purchase of Beechgrove and Balhousie Primary School by the HRA in March 2024, both using Scottish Government grant received. Scottish Government Grant of £1.4 million has also been awarded for Council House Buy-Backs in 2024/25 and, after adjusting for the £35,000 difference from 2023/24, it is proposed to increase the budget for purchases in 2024/25 by this amount. In addition, £90,000 of grant has been awarded for Mortgage-to Rent programme, and this budget has also been increased by this amount. 7.5 It is proposed to allocate some of the SHQS Future Developments Budget in 2028/29 to current schemes, as follows: • Triple Glazing - £967,000 in 2024/25 for the new window replacement programme, including additional properties added to the current contract that were unable to be progressed previously. • External Fabric - £941,000 in 2024/25 for start of the new contract. A further £259,000 is proposed to be accelerated from the 2025/26 External Fabric budget, as well as a further £142,000 of private owner recharges. • Bathroom Upgrades - £1.250 million in 2024/25, based on current estimated demand and requirements. • Environmental Improvements - £245,000 in 2024/25 for additional works at Pullar Terrace as well as drainage works at different sites. • Rannoch Road Regeneration - £144,000 in 2024/25 for the installation of a new walkway. • Controlled Door Entry - £21,000 in 2024/25 to meet costs of additional security requests. This amount is enhanced by a further £5,000 of recharges to private owners. Page 64 of 132
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• Double Dykes Chalet Replacements - £2.538 million in 2024/25 and £573,000 in 2025/26. These works are enhanced by a further £3.426 million of Scottish Government grant allocated to the works in 2024/25. 7.6 There are various other small adjustments to various programmes reflecting differences in expenditure brought forward from 2023/24 amounting to a net £147,000. It is proposed that all such amounts are transferred to the General Capital Works Budget in 2024/25. The only significant movement included within this is a £120,000 saving in the Fire Precautions budget on completion of the smoke alarm contract. 7.7 There have also been small land disposals totalling £5,000 in the current year to date. After allowing for the £83,000 reduction brought forward from 2023/24, the borrowing requirement has therefore reduced by an overall £88,000 for the current programme. 8. BUDGET OVERVIEW 8.1 The projected net expenditure outturn in 2024/25 for the Composite Capital Budget is £171.973 million and represents 87% of the original 2024/25 budget approved on 24 April 2024 (£198.184 million). The revised budget is based on the latest projections of expenditure and all budget adjustments outlined within this report. 8.2 Net expenditure to 31 July 2024 on the Composite Capital Budget is £41.492 million and represents 24% of the proposed revised budget for 2024/25 of £171.973 million. 8.3 The projected net expenditure outturn in 2024/25 for the Housing Investment Programme is £27.818 million and represents 129% of the original 2024/25 budget approved on 26 April 2024 (£21.536 million). This increase reflects the allocation of future years block budgets to specific projects in 2024/25 as well as the inclusion of expenditure proposed at Double Dykes following the award of Scottish Government grant 8.4 Net expenditure to 31 July 2024 on the Housing Investment Programme is £7.679 million which represents 28% of the proposed revised budget for 2024/25 of £27.818 million. 8.5 The Council’s total Borrowing Requirement to 31 July 2024, based on the Composite and Housing Investment Programmes, is £37.831 million. The estimated overall Council Borrowing Requirement for 2024/25 as a whole has reduced by £22.328 million to £167.298 million as a result of the monitoring adjustments reflected within this report. This reflects a reduction in estimated borrowing on the Composite Programme of £28.605 million, and an increase on the Housing Investment Programme of £6.277 million. These amounts included borrowing carried forward from last year. 8.6 In the context of the Capital Budget, the borrowing above refers specifically to the funding of capital expenditure and therefore the need to borrow. The actual amounts and timing of the borrowing is undertaken as part of the Page 65 of 132
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Council’s Treasury Management operations and reported within the Treasury Activity and Compliance reports throughout the year. Author(s) Name Designation Contact Details John Jennings Senior Accountant CHXFinance@pkc.gov.uk Approved Name Designation Date Scott Walker Chief Finance Officer 9 September 2024 Page 66 of 132
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement None Corporate Plan Yes Resource Implications Financial Yes Workforce Yes Asset Management (land, property, IST) Yes Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Corporate Plan 1.1 The Council’s Corporate Plan 2022 – 2027 lays out seven outcome focussed strategic objectives which provide clear strategic direction, inform decisions at a corporate and service level and shape resources allocation. They are as follows: • Tackling Poverty • Tackling climate change and supporting sustainable places • Growing a sustainable and inclusive local economy • Enabling our children and young people to achieve their full potential • Protecting and caring for our most vulnerable people • Supporting and promoting physical and mental wellbeing • Placing communities at the heart of how we work 1.2 This report relates to all of these objectives. 2. Resource Implications Financial 2.1 There are no direct financial implications arising from this report other than those reported within the body of the main report. Page 67 of 132
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Workforce 2.2 There are no direct workforce implications arising from this report other than those reported within the body of the main report. Asset Management (land, property, IT) 2.3 There are no direct asset management implications arising from this report other than those reported within the body of the main report. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 The information contained within this report has been considered under the Corporate Equalities Impact Assessment process (EqIA) and has been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.4 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Sustainability 3.5 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. In terms of the Climate Change Act, the Council has a general duty to demonstrate its commitment to sustainability and the community, environmental and economic impacts of its actions. 3.6 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. 4. Consultation Internal 4.1 The Chief Executive and the Executive Directors have been consulted in the preparation of this report. Page 68 of 132
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2. BACKGROUND PAPERS No background papers, as defined by Section 50D of the Local Government (Scotland) Act 1973 (other than any containing confidential or exempt information) were relied on to any material extent in preparing the above report. 3. APPENDICES Appendix I – Composite Capital Programme - Estimated Capital Resources 2024/25 to 2029/30 Appendix II – Composite Capital Programme - Summary of Capital Resources and Expenditure 2024/25 to 2029/30 Appendix III – HRA Capital Investment Programme – Summary of Capital Resources and Expenditure 2024/25 to 2029/30 Appendix IV – Significant Capital Projects Progress Update Page 69 of 132
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME Estimated Capital Resources 2024/25 to 2029/30 APPENDIX I Capital Capital Capital Capital Capital Capital Capital Resources Resources Resources Resources Resources Resources Resources 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Revised Revised Revised Revised Revised Revised Revised Budget Budget Budget Budget Budget Budget Budget Capital Grants Cycling, Walking & Safer Routes (CWSR) 0 0 0 0 0 0 0 Recycling Improvement Fund 386 0 0 0 0 0 386 Cross Tay Link Road - Transport Scotland 0 0 0 0 0 0 0 Inspiring School Age Childcare Spaces 0 0 0 0 0 0 0 Gypsy Travellers Improvements 0 0 0 0 0 0 0 General Capital Grant 24,777 13,239 19,255 12,750 12,750 12,750 95,521 Total Capital Grants 25,163 13,239 19,255 12,750 12,750 12,750 95,907 General Capital Receipts General Fund - Capital Receipts 476 444 0 0 0 0 920 General Fund - Ring Fenced Receipts 589 352 902 1,047 950 980 4,820 Total General Capital Receipts 1,065 796 902 1,047 950 980 5,740 Commercial Property Receipts Capital Receipts brought-forward 2,102 1,120 1,550 1,550 2,638 2,638 2,102 Commercial Property Capital Receipts 713 430 0 1,088 0 0 2,231 Capital Receipts carried-forward (1,120) (1,550) (1,550) (2,638) (2,638) (2,638) (2,638) Total Commercial Property Receipts Applied 1,695 0 0 0 0 0 1,695 Contributions Tay Cities Deal 950 550 505 2,946 500 956 6,407 Developer Contributions 3,707 2,367 2,600 2,600 2,500 2,500 16,274 Other Third Party Contributions 1,001 0 2,000 3,000 1,000 1,000 8,001 Revenue Budget Contributions 100 124 124 0 0 0 348 Total Contributions 5,758 3,041 5,229 8,546 4,000 4,456 31,030 Capital Borrowing Requirement 141,318 96,225 108,721 62,547 46,397 29,592 484,800 TOTAL CAPITAL RESOURCES/ GROSS BUDGET EXPENDITURE 174,999 113,301 134,107 84,890 64,097 47,778 619,172 6 Page 71 of 132
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME Estimated Capital Resources 2024/25 to 2029/30 APPENDIX I Movements in Resources from Approved Budget - 24 April 2024 Resources Revised Revised Revised Revised Revised Revised Revised b/f - 2023/24 Budget Budget Budget Budget Budget Budget Budget to 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Increase/(Decrease) in: Capital Receipts - General Fund (685) 742 (212) (250) (250) 0 0 (655) Capital Receipts - Commercial Property 1 0 0 0 0 0 0 1 Capital Receipts - Ring Fenced 90 (1) 0 0 0 0 0 89 Capital Grants: Cycling, Walking & Safer Routes (CWSR) 200 (864) (200) (200) (200) (200) (200) (1,664) Recycling Improvement Fund 386 0 0 0 0 0 0 386 Cross Tay Link Road - Transport Scotland 0 0 0 0 0 0 0 0 Inspiring School Age Childcare Spaces 0 0 0 0 0 0 0 0 Gypsy Travellers Improvements 0 0 0 0 0 0 0 0 General Capital Grant 1,755 (1,056) 600 1,247 600 600 600 4,346 Tay Cities Deal (49) 0 0 0 0 0 0 (49) Third Party Contributions 258 72 0 0 0 0 0 330 Revenue Contributions (227) 277 (1) (1) 0 0 0 48 Developer Contributions 1,407 0 0 0 0 0 0 1,407 Resources b/f 0 230 0 0 0 0 0 230 Resources c/f to future years 230 (230) 0 0 0 0 0 0 Borrowing Requirement 8,509 (37,114) 22,201 26,905 (37,674) 26,658 13,370 22,855 Total Increase/(Decrease) in Resources 11,875 (37,944) 22,388 27,701 (37,524) 27,058 13,770 27,324 Approved Resources 24 April & 28 February 2024 201,068 90,913 106,406 122,414 37,039 34,008 591,848 Revised Resources 174,999 113,301 134,107 84,890 64,097 47,778 619,172 Page 72 of 132
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 APPENDIX II Approved Actual Proposed Approved Proposed Proposed Revised Actuals Projected Approved Proposed Revised Approved Proposed Revised Budget Expenditure Carry Budget Brought Budget Budget to Outturn Budget Budget Budget Budget Budget Budget 24-Apr-24 Forward 24-Apr-24 Forward Adjustment 31-Jul-24 24-Apr-24 Adjustment 24-Apr-24 Adjustment to from Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 2023/24 2023/24 2024/25 2024/25 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2025/26 2025/26 2026/27 2026/27 2026/27 (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) ENVIRONMENT & INFRASTRUCTURE 21,683 20,295 1,388 35,641 1,388 456 37,485 8,845 37,485 36,636 935 37,571 38,449 1,257 39,706 HOUSING & COMMUNITIES 543 490 53 2,802 53 (3) 2,852 72 2,852 3,230 0 3,230 1,273 0 1,273 ECONOMY, DEVELOPMENT & PLANNING 44,352 40,336 4,016 73,443 4,016 (23,020) 54,439 12,426 54,439 10,817 720 11,537 6,945 22,300 29,245 PROPERTY SERVICES 63,245 57,720 5,525 73,942 5,525 (11,270) 68,197 19,313 68,197 32,444 19,657 52,101 49,704 4,113 53,817 CUSTOMER & DIGITAL SERVICES 5,681 5,430 251 10,170 251 (2,383) 8,038 634 8,038 5,168 1,019 6,187 4,913 232 5,145 HEALTH & SOCIAL CARE 1,053 1,069 (16) 2,186 (16) (1,208) 962 202 962 1,391 258 1,649 1,390 0 1,390 TOTAL NET EXPENDITURE 136,557 125,340 11,217 198,184 11,217 (37,428) 171,973 41,492 171,973 89,686 22,589 112,275 102,674 27,902 130,576 (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) GENERAL CAPITAL GRANT (22,699) (20,944) (1,755) (24,078) (1,755) 1,056 (24,777) (9,436) (24,777) (12,639) (600) (13,239) (18,008) (1,247) (19,255) DEVELOPER CONTRIBUTIONS (2,847) (1,440) (1,407) (2,300) (1,407) 0 (3,707) 0 (3,707) (2,367) 0 (2,367) (2,600) 0 (2,600) CAPITAL RECEIPTS (801) (1,485) 684 (1,131) 684 (742) (1,189) (268) (1,189) (1,086) 212 (874) (250) 250 0 ANNUAL BORROWING REQUIREMENT 110,210 101,471 8,739 170,675 8,739 (37,114) 142,300 31,788 142,300 73,594 22,201 95,795 81,816 26,905 108,721 CAPITAL RECEIPTS BROUGHT FORWARD (2,245) (2,245) 0 (1,872) 0 (230) (2,102) (2,102) (2,102) (1,120) 0 (1,120) (1,550) 0 (1,550) CAPITAL RECEIPTS CARRIED FORWARD 1,872 2,102 (230) 1,120 (230) 230 1,120 471 1,120 1,550 0 1,550 1,550 0 1,550 TOTAL NET BORROWING REQUIREMENT 109,837 101,328 8,509 169,923 8,509 (37,114) 141,318 30,157 141,318 74,024 22,201 96,225 81,816 26,905 108,721 6 Page 73 of 132
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 APPENDIX II ENVIRONMENT & INFRASTRUCTURE HOUSING & COMMUNITIES ECONOMY, DEVELOPMENT & PLANNING PROPERTY SERVICES CUSTOMER & DIGITAL SERVICES HEALTH & SOCIAL CARE TOTAL NET EXPENDITURE (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) GENERAL CAPITAL GRANT DEVELOPER CONTRIBUTIONS CAPITAL RECEIPTS ANNUAL BORROWING REQUIREMENT CAPITAL RECEIPTS BROUGHT FORWARD CAPITAL RECEIPTS CARRIED FORWARD TOTAL NET BORROWING REQUIREMENT Approved Proposed Revised Approved Proposed Revised Approved Proposed Revised Revised Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 24-Apr-24 Adjustment 24-Apr-24 Adjustment 24-Apr-24 Adjustment Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 2027/28 2027/28 2027/28 2028/29 2028/29 2028/29 2029/30 2029/30 2029/30 (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) 20,295 460 20,755 16,580 895 17,475 16,580 717 17,297 170,289 1,419 0 1,419 1,500 0 1,500 1,500 0 1,500 11,774 (4,863) 0 (4,863) (2,150) 0 (2,150) (2,636) 0 (2,636) 85,572 86,617 (37,750) 48,867 10,000 25,000 35,000 10,000 12,500 22,500 280,482 10,447 (34) 10,413 8,139 363 8,502 5,108 803 5,911 44,196 1,306 0 1,306 320 1,000 1,320 320 (50) 270 6,897 115,221 (37,324) 77,897 34,389 27,258 61,647 30,872 13,970 44,842 599,210 (12,150) (600) (12,750) (12,150) (600) (12,750) (12,150) (600) (12,750) (95,521) (2,600) 0 (2,600) (2,500) 0 (2,500) (2,500) 0 (2,500) (16,274) (1,338) 250 (1,088) 0 0 0 0 0 0 (3,151) 99,133 (37,674) 61,459 19,739 26,658 46,397 16,222 13,370 29,592 484,264 (1,550) 0 (1,550) (2,638) 0 (2,638) (2,638) 0 (2,638) (2,102) 2,638 0 2,638 2,638 0 2,638 2,638 0 2,638 2,638 100,221 (37,674) 62,547 19,739 26,658 46,397 16,222 13,370 29,592 484,800 Page 74 of 132
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 APPENDIX II Approved Actual Proposed Approved Proposed Proposed Revised Actual Projected Revised Revised Revised Revised Revised Revised Budget Expenditure Carry Budget Brought Budget Budget to Outturn Budget Budget Budget Budget Budget Budget 24-Apr-24 Forward 24-Apr-24 Forward Adjustment 18-Sep-24 31-Jul-24 18-Sep-24 18-Sep-24 18-Sep-24 18-Sep-24 18-Sep-24 to from Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 2023/24 2023/24 2024/25 2024/25 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) ENVIRONMENT & INFRASTRUCTURE Traffic & Road Safety Road Safety Initiatives (20mph Zones etc..) 34 27 7 328 7 335 335 362 362 361 400 400 2,220 Road Safety Initiatives - A94 Safety Improvements 0 0 84 0 84 84 0 0 0 0 0 84 Active Travel Grant -Traffic & Road Safety Schemes 0 0 0 0 739 739 185 739 600 600 600 600 600 3,739 Additional Road Safety - Pedestrian Crossings 0 0 153 0 153 153 153 153 0 0 0 459 Schools Road Safety Measures 488 476 12 0 12 110 122 26 122 0 0 0 0 0 122 Scottish Government Grant - CWSS 0 (92) 92 0 92 (92) 0 0 0 0 0 0 0 0 Third Party Contribution (TACTRAN) 0 (18) 18 0 18 (18) 0 0 0 0 0 0 0 0 20mph Signage Programme - Schools 10 1 9 119 9 128 128 0 0 0 0 0 128 20mph Signage Programme 76 37 39 0 39 39 13 39 0 0 0 0 0 39 Cycling Walking & Safer Routes (CWSR) 1,462 1,218 244 664 244 (908) 0 9 0 0 0 0 0 0 0 Scottish Government Grant - CWSR (1,312) (1,020) (292) (664) (292) 956 0 0 0 0 0 0 0 0 Third Party Contribution (TACTRAN) (150) (198) 48 0 48 (48) 0 0 0 0 0 0 0 0 Car Parking Investment 396 439 (43) 0 (43) 43 0 0 0 0 0 0 0 0 Revenue Contribution (105) (148) 43 0 43 (43) 0 0 0 0 0 0 0 0 Car Parking Investment - Pitlochry 0 0 150 0 55 205 77 205 0 0 0 0 0 205 Revenue Contribution 0 0 0 0 (55) (55) (55) 0 0 0 0 0 (55) Sub-Total 899 722 177 834 177 739 1,750 310 1,750 1,115 1,115 961 1,000 1,000 6,941 Asset Management - Roads & Lighting Structural Maintenance 11,368 11,884 (516) 10,420 (516) 1,007 10,911 4,737 10,911 9,298 9,506 7,300 9,800 9,800 56,615 Third Party Contribution (Forestry Commission Timber Routes) (390) (397) 7 0 7 (7) 0 0 0 0 0 0 0 0 Third Party Contribution (99) (94) (5) 0 (5) 5 0 0 0 0 0 0 0 0 Revenue Contribution 0 (5) 5 0 5 (5) 0 0 0 0 0 0 0 0 Traffic Signal Renewals - Upgrading 4 4 169 4 173 173 100 100 100 100 100 673 Footways 655 630 25 390 25 415 337 415 390 390 393 410 410 2,408 Street Lighting 0 0 0 0 0 0 0 0 0 600 600 1,200 Investment in Local Footpaths 0 40 (40) 0 (40) 40 0 0 20 100 0 0 0 120 Road Safety Barriers 0 0 22 0 22 22 0 0 0 0 0 22 Sub-Total 11,538 12,058 (520) 11,001 (520) 1,040 11,521 5,074 11,521 9,808 10,096 7,793 10,910 10,910 61,038 Asset Management - Bridges Bridge Refurbishment Programme 1,272 1,218 54 1,736 54 (337) 1,453 145 1,453 2,558 2,520 3,201 2,000 2,000 13,732 Vehicular Bridge Parapets Programme - Assess & Upgrade 0 1 (1) 35 (1) 34 34 0 0 0 0 0 34 Old Perth Bridge - Strengthening 50 34 16 50 16 59 125 13 125 2,410 0 0 0 0 2,535 Perth Queens Bridge - Strengthening 252 262 (10) 143 (10) (48) 85 29 85 118 2,153 0 0 0 2,356 Garry Viaduct 38 38 0 372 0 372 2 372 300 1,900 1,790 0 0 4,362 Culteuchar Culvert 433 445 (12) 20 (12) 8 8 0 0 0 0 0 8 Sub-Total 2,045 1,998 47 2,356 47 (326) 2,077 189 2,077 5,386 6,573 4,991 2,000 2,000 23,027 Improvement Schemes A977 Upgrades 367 362 5 173 5 (177) 1 1 177 0 0 0 0 178 Brioch Road, Crieff - Road Realignment & Safety Measures 31 13 18 0 18 18 18 0 0 0 0 0 18 Sub-Total 398 375 23 173 23 (177) 19 0 19 177 0 0 0 0 196 Rural Flood Protection Schemes Almondbank Flood Protection Scheme 17 200 (183) 0 (183) 183 0 0 0 0 0 0 0 0 Revenue Contribution 0 (183) 183 0 183 (183) 0 0 0 0 0 0 0 0 Perth Flood Protection Scheme (South Inch Culvert Reinstatement) 92 95 (3) 262 (3) 259 38 259 0 0 0 0 0 259 Comrie Flood Protection Scheme 1,273 1,108 165 10,310 165 10,475 48 10,475 15,420 9,609 0 0 0 35,504 Milnathort Flood Protection Scheme 51 24 27 229 27 256 256 83 0 0 0 0 339 South Kinross Flood Protection Scheme 251 245 6 412 6 418 1 418 1,783 8,823 3,150 75 0 14,249 Scone Flood Protection Scheme 0 0 50 0 50 50 69 68 535 45 0 767 Flood Mitigation Measures - Dunkeld and Craigie Burn 0 0 1,000 0 (992) 8 8 72 48 180 375 317 1,000 Coastal Change Adaptation 0 0 100 0 100 100 0 0 0 0 0 100 Sub-Total 1,684 1,489 195 12,363 195 (992) 11,566 87 11,566 17,427 18,548 3,865 495 317 52,218 Climate Change Nature Restoration 386 329 57 0 57 175 232 10 232 0 0 0 0 0 232 Sub-Total 386 329 57 0 57 175 232 10 232 0 0 0 0 0 232 Waste Strategy Recycling Improvement Fund 2,363 1,977 386 0 386 386 202 386 0 0 0 0 0 386 Scottish Government Grant (2,363) (1,977) (386) 0 (386) (386) (386) 0 0 0 0 0 (386) Sub-Total 0 0 0 0 0 0 0 202 0 0 0 0 0 0 0 Page 75 of 132
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 APPENDIX II Approved Actual Proposed Approved Proposed Proposed Revised Actual Projected Revised Revised Revised Revised Revised Revised Budget Expenditure Carry Budget Brought Budget Budget to Outturn Budget Budget Budget Budget Budget Budget 24-Apr-24 Forward 24-Apr-24 Forward Adjustment 18-Sep-24 31-Jul-24 18-Sep-24 18-Sep-24 18-Sep-24 18-Sep-24 18-Sep-24 to from Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 2023/24 2023/24 2024/25 2024/25 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Prudential Borrowing Projects Wheeled Bin Replacement Programme - Domestic Bins 145 136 9 258 9 267 86 267 200 200 200 220 220 1,307 Wheeled Bin Replacement Programme - Commercial Bins 171 142 29 57 29 86 86 20 20 20 25 25 196 Recycling Containers, Oil Banks & Battery Banks Replacement Programme205 103 102 120 102 222 96 222 105 105 105 70 70 677 Capital Receipts - Disposals (9) (7) (2) 0 (2) (2) (2) (2) 0 0 0 0 0 (2) Litter Bins 25 25 0 50 0 50 50 50 50 50 55 55 310 Smart Cities - Smart Waste 45 46 (1) 0 (1) 1 0 0 0 0 0 0 0 0 Third Party Contribution (ERDF) (24) (28) 4 0 4 (4) 0 0 0 0 0 0 0 0 Vehicle Replacement Programme 3,700 2,460 1,240 8,031 1,240 9,271 2,682 9,271 2,800 2,800 2,500 3,000 3,000 23,371 Capital Receipts - Vehicle Disposals (306) (219) (87) (500) (87) (587) (117) (587) (352) (352) (322) (300) (300) (2,213) Street Lighting Renewal - LED & Column Replacement 774 659 115 898 115 1,013 228 1,013 835 551 592 0 0 2,991 LED Traffic Signal Replacement 4 4 0 0 0 0 0 0 0 0 0 0 0 Almondbank Flood Protection Scheme 3 3 0 0 0 0 0 0 0 0 0 0 0 Sub Total 4,733 3,324 1,409 8,914 1,409 (3) 10,320 2,973 10,320 3,658 3,374 3,145 3,070 3,070 26,637 TOTAL - ENVIRONMENT & INFRASTRUCTURE 21,683 20,295 1,388 35,641 1,388 456 37,485 8,845 37,485 37,571 39,706 20,755 17,475 17,297 170,289 HOUSING & COMMUNITIES Community Greenspace Play Areas - Improvements Implementation Strategy 423 407 16 973 16 989 4 989 561 150 150 500 500 2,850 Third Party Contribution (10) (6) (4) 0 (4) (4) (4) 0 0 0 0 0 (4) 3G Pitch, Blairgowrie 3 3 0 117 0 117 117 0 0 0 0 0 117 Settlement/Neighbourhood Parks 26 26 0 429 0 429 429 0 0 0 0 0 429 Countryside Sites 0 0 139 0 139 139 0 0 0 0 0 139 Community Greenspace Sites 0 1 (1) 306 (1) 305 305 450 898 894 700 700 3,947 Community Greenspace Bridges 38 10 28 100 28 128 27 128 0 0 0 0 0 128 Third Party Contribution 0 0 (13) 0 (13) (13) 0 0 0 0 0 (13) Revenue Contribution (11) (11) 0 (11) (11) (11) 0 0 0 0 0 (11) Core Path Implementation 45 34 11 0 11 11 11 0 0 0 0 0 11 Third Party Contribution (45) (34) (11) 0 (11) (11) (11) 0 0 0 0 0 (11) Premier Parks 28 3 25 0 25 25 25 0 0 0 0 0 25 Third Party Contribution (14) (14) 0 (14) (14) (14) 0 0 0 0 0 (14) Auchterarder Public Park 26 26 0 0 0 0 0 0 0 0 0 0 0 The Knock 0 0 0 0 0 0 0 0 0 0 0 0 Third Party Contribution (3) (3) 0 0 0 0 0 0 0 0 0 0 0 Kinnoull Hill 0 0 8 0 8 8 0 0 0 0 0 8 Third Party Contribution (4) (4) 0 0 0 0 0 0 0 0 0 0 0 Cemetery Extensions 20 16 4 60 4 64 64 229 225 375 300 300 1,493 Sub-Total 522 479 43 2,119 43 0 2,162 31 2,162 1,240 1,273 1,419 1,500 1,500 9,094 Prudential Borrowing Projects Crematorium - Abatement Works 0 (3) 3 0 3 (3) 0 0 0 0 0 0 0 0 Sub Total 0 (3) 3 0 3 (3) 0 0 0 0 0 0 0 0 0 Housing Projects Gypsy Travellers Site Improvement Works 11 10 1 184 1 185 185 0 0 0 0 0 185 Additional Gypsy Traveller Site Improvement Works 0 0 225 0 225 225 0 0 0 0 0 225 New Gypsy Traveller Site 10 4 6 0 6 6 6 1,990 0 0 0 0 1,996 Less Scottish Government Grant 0 0 0 0 0 0 0 0 0 0 0 0 0 Sub Total 21 14 7 409 7 0 416 0 416 1,990 0 0 0 0 2,406 Public Transport Community Transport Iniatives 0 0 199 0 199 41 199 0 0 0 0 0 199 Sub-Total 0 0 0 199 0 0 199 41 199 0 0 0 0 0 199 Community Planning Community-Led Asset Transfers 0 0 75 0 75 75 0 0 0 0 0 75 Sub-Total 0 0 0 75 0 0 75 0 75 0 0 0 0 0 75 TOTAL - HOUSING & COMMUNITIES 543 490 53 2,802 53 (3) 2,852 72 2,852 3,230 1,273 1,419 1,500 1,500 11,774 ECONOMY, DEVELOPMENT & PLANNING Improvement Schemes A9/A85 Road Junction Improvements 57 58 (1) 213 (1) 212 212 0 0 0 0 0 212 Cross Tay Link Road (CTLR) 57,785 54,310 3,475 41,270 3,475 44,745 10,363 44,745 0 0 0 0 0 44,745 Scottish Government Grant (15,000) (15,000) 0 0 0 0 0 0 0 0 0 0 0 Bertha Park Link Road 324 306 18 668 18 686 334 686 400 10,000 1,808 0 0 12,894 Sub-Total 43,166 39,674 3,492 42,151 3,492 0 45,643 10,697 45,643 400 10,000 1,808 0 0 57,851 Page 76 of 132
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 APPENDIX II Approved Actual Proposed Approved Proposed Proposed Revised Actual Projected Revised Revised Revised Revised Revised Revised Budget Expenditure Carry Budget Brought Budget Budget to Outturn Budget Budget Budget Budget Budget Budget 24-Apr-24 Forward 24-Apr-24 Forward Adjustment 18-Sep-24 31-Jul-24 18-Sep-24 18-Sep-24 18-Sep-24 18-Sep-24 18-Sep-24 to from Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 2023/24 2023/24 2024/25 2024/25 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Perth & Kinross Place-making Mill Street Environmental Improvements 49 50 (1) 0 (1) (1) (1) 0 0 0 0 0 (1) Perth, Place, People 0 0 3,598 0 3,598 3,598 0 0 0 0 0 3,598 Perth City Centre Golden Route (Rail Station) 51 21 30 38 30 68 24 68 0 0 0 0 0 68 City Greening 0 0 31 0 31 31 0 0 0 0 0 31 Perth & Kinross Lighting Action Plan 638 428 210 1,110 210 1,320 53 1,320 0 0 0 0 0 1,320 Sub-Total 738 499 239 4,777 239 0 5,016 77 5,016 0 0 0 0 0 5,016 Other Planning Projects Creative Exchange (former St. John's Primary School) 53 1 52 0 52 52 52 0 0 0 0 0 52 Local Full Fibre Network 26 5 21 0 21 21 21 0 0 0 0 0 21 Third Party Contribution - Tay Cities Deal (4) 16 (20) 0 (20) (20) (53) (20) 0 0 0 0 0 (20) Low Carbon Transport & Active Travel Hub - Broxden EV Chargers 429 503 (74) 0 (74) (74) 5 (74) 0 0 0 0 0 (74) Third Party Contribution - ERDF (162) (160) (2) 0 (2) (2) (2) 0 0 0 0 0 (2) Third Party Contribution - Tay Cities Deal (267) (336) 69 0 69 69 69 0 0 0 0 0 69 Revenue Contribution 0 (7) 7 0 7 7 7 0 0 0 0 0 7 Perth Eco-Innovation Park at Perth West 0 0 23,800 0 (23,020) 780 780 9,737 22,300 0 0 0 32,817 Third Party Contributions - Tay Cities Deal 0 0 (999) 0 (999) (999) (550) (505) (2,946) (500) (956) (6,456) Other Third Party Contributions 0 0 0 0 0 0 0 (2,000) (3,000) (1,000) (1,000) (7,000) Capital Receipts - Ring Fenced Land Disposals 0 0 0 0 0 0 0 (550) (725) (650) (680) (2,605) Economic Development Investment - Land & Serviced Units 0 0 1,000 0 1,000 1,000 1,000 0 0 0 0 2,000 Adapt Your Property - Vacant Town & City Centre Space 0 0 300 0 300 300 0 0 0 0 0 300 Sub-Total 75 22 53 24,101 53 (23,020) 1,134 (48) 1,134 10,187 19,245 (6,671) (2,150) (2,636) 19,109 Commercial Property Investment Programme North Muirton Industrial Estate - Site Servicing & Provision of Units 57 14 43 0 43 43 43 0 0 0 0 0 43 Broxden Business Park - Additional Infrastructure 10 10 0 10 10 10 0 0 0 0 0 10 Western Edge, Kinross - Site Servicing 5 22 (17) 0 (17) (17) 17 (17) 0 0 0 0 0 (17) Broxden Drainage Mitigation Works 638 283 355 866 355 1,221 1,683 1,221 0 0 0 0 0 1,221 Third Party Contribution (Scottish Water) (470) (209) (261) (658) (261) (919) (919) 0 0 0 0 0 (919) Ruthvenfield Business Centre 116 16 100 1,256 100 1,356 1,356 0 0 0 0 0 1,356 North Muirton Drainage 17 15 2 0 2 2 2 0 0 0 0 0 2 Sub-Total 373 141 232 1,464 232 0 1,696 1,700 1,696 0 0 0 0 0 1,696 Prudential Borrowing Projects Land Purchase & Development (Hotel Development) 0 0 950 0 950 950 950 0 0 0 0 1,900 Sub Total 0 0 0 950 0 0 950 0 950 950 0 0 0 0 1,900 TOTAL - ECONOMY, DEVLOPMENT & PLANNING 44,352 40,336 4,016 73,443 4,016 (23,020) 54,439 12,426 54,439 11,537 29,245 (4,863) (2,150) (2,636) 85,572 PROPERTY SERVICES Project Support Investment in the Learning Estate 1,734 1,868 (134) 10,145 (134) (8,440) 1,571 409 1,571 13,050 8,650 6,823 0 0 30,094 Scottish Govt. Grant (Inspiring School Age Childcare Spaces) (105) (105) 0 0 0 0 0 0 0 0 0 0 0 Methven Primary School Refurbishment 243 258 (15) 21 (15) 200 206 8 206 3,500 300 0 0 0 4,006 Breadalbane Academy, Aberfeldy - 3G Pitch 29 28 1 0 1 (1) 0 0 0 0 0 0 0 0 Third Party Contribution (The Scottish Football Association) (29) (29) 0 0 0 0 0 0 0 0 0 0 0 Kirkmichael Primary School Upgrades 0 6 (6) 32 (6) (1) 25 25 0 0 0 0 0 25 Capital Receipt (ring-fenced) (128) (127) (1) 0 (1) 1 0 0 0 0 0 0 0 0 Early Learning & Childcare 0 0 0 0 0 0 0 0 0 0 0 0 - Letham Primary School Upgrade Project 0 (59) 59 0 59 (59) 0 0 0 0 0 0 0 0 - Oakbank Primary School Upgrade Project 12 12 0 0 0 0 0 0 0 0 0 0 0 - Rattray Primary School Upgrade Project 155 135 20 0 20 20 20 0 0 0 0 0 20 North/West Perth - New Primary School 718 546 172 0 172 (172) 0 24 0 341 7,672 15,400 0 0 23,413 Riverside Primary New School 3,410 2,927 483 0 483 483 33 483 0 0 0 0 0 483 Perth Academy - Refurbishment 3,066 3,112 (46) 1,745 (46) 1,699 521 1,699 1,650 1,650 0 0 0 4,999 Perth Grammar School - Upgrade Programme Phase 3 1,112 985 127 1,857 127 (984) 1,000 4 1,000 1,500 1,488 0 0 0 3,988 Perth High School - Internal Services & Refurbishment 16 4 12 0 12 12 12 0 0 0 0 0 12 Perth High School - New School Investment 20,404 19,845 559 36,340 559 4,000 40,899 9,681 40,899 6,600 3,600 0 0 0 51,099 Harris Academy/Invergowrie - Extension 4,211 3,770 441 150 441 591 21 591 0 0 0 0 0 591 Blairgowrie Recreation Centre - Replacement 16,374 16,897 (523) 13,150 (523) 2,700 15,327 7,835 15,327 1,303 0 0 0 0 16,630 Technology Upgrades 128 25 103 1,016 103 (1,043) 76 76 76 771 522 0 0 0 1,369 Sub-Total 51,350 50,098 1,252 64,456 1,252 (3,799) 61,909 18,612 61,909 28,715 23,882 22,223 0 0 136,729 Project & Contracts Free School Meal Expansion Programme 1,348 213 1,135 2,000 1,135 (3,135) 0 0 1,000 2,135 0 0 0 3,135 Community Campus Access Adaptations 0 0 25 0 (10) 15 15 10 0 0 0 0 25 Sub-Total 1,348 213 1,135 2,025 1,135 (3,145) 15 0 15 1,010 2,135 0 0 0 3,160 Property Service Manager DDA Adaptation & Alteration Works Programme 400 380 20 210 20 230 230 200 200 200 0 0 830 Property Compliance Works Programme 575 754 (179) 727 (179) 469 1,017 308 1,017 650 650 400 0 0 2,717 Third Party Contribution (LAL) (25) (25) 0 0 0 0 0 0 0 0 0 0 0 Capital Improvement Projects Programme 2,037 1,810 227 2,038 227 2,265 120 2,265 1,800 1,800 894 10,000 10,000 26,759 Pitlochry High School - Upgrade Programme 180 152 28 136 28 164 1 164 0 0 0 0 0 164 Friarton Depot - Waste Transfer Station 0 0 2,250 0 (2,000) 250 3 250 2,531 0 0 0 0 2,781 Page 77 of 132
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PERTH AND KINROSS COUNCIL COMPOSITE CAPITAL PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2029/30 APPENDIX II Approved Actual Proposed Approved Proposed Proposed Revised Actual Projected Revised Revised Revised Revised Revised Revised Budget Expenditure Carry Budget Brought Budget Budget to Outturn Budget Budget Budget Budget Budget Budget 24-Apr-24 Forward 24-Apr-24 Forward Adjustment 18-Sep-24 31-Jul-24 18-Sep-24 18-Sep-24 18-Sep-24 18-Sep-24 18-Sep-24 to from Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 2023/24 2023/24 2024/25 2024/25 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 TOTAL (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) Energy Efficiency Works - Various Properties 27 27 0 0 0 0 0 0 0 0 0 0 0 Revenue Contribution (Salix Reserve) (27) (27) 0 0 0 0 0 0 0 0 0 0 0 Letham Community Wellbeing Hub 1,571 1,438 133 0 133 133 133 0 0 0 0 0 133 Third Party Contribution (Letham4All) (519) (481) (38) 0 (38) (38) (38) 0 0 0 0 0 (38) PH2O 0 0 500 0 500 500 2,000 25,000 25,000 25,000 12,500 90,000 Perth Museum 2,368 2,201 167 0 167 167 167 0 0 0 0 0 167 Perth Art Gallery 3,272 377 2,895 0 2,895 (2,795) 100 100 2,795 0 0 0 0 2,895 Sub-Total 9,859 6,606 3,253 5,861 3,253 (4,326) 4,788 432 4,788 9,976 27,650 26,494 35,000 22,500 126,408 Prudential Borrowing Projects Decarbonisation 550 661 (111) 1,450 (111) 1,339 269 1,339 0 0 0 0 0 1,339 Energy Conservation & Carbon Reduction Programme 138 142 (4) 150 (4) 146 146 150 150 150 0 0 596 Pullar House - Purchase & Re-Purposing 0 0 0 0 0 0 0 10,000 0 0 0 0 10,000 Kinnoull Street Car Park - Purchase 0 0 0 0 0 0 0 2,250 0 0 0 0 2,250 Sub-Total 688 803 (115) 1,600 (115) 0 1,485 269 1,485 12,400 150 150 0 0 14,185 TOTAL - PROPERTY SERVICES 63,245 57,720 5,525 73,942 5,525 (11,270) 68,197 19,313 68,197 52,101 53,817 48,867 35,000 22,500 280,482 CUSTOMER & DIGITAL SERVICES ICT Infrastructure Replacement and Upgrade Programme 2,416 2,365 51 6,745 51 (1,869) 4,927 87 4,927 3,562 3,273 7,698 6,472 3,687 29,619 Data & Analytics 600 546 54 806 54 (260) 600 68 600 1,206 720 708 716 733 4,683 Supporting Digital 700 665 35 963 35 (248) 750 133 750 1,175 928 1,185 914 920 5,872 Software Licences (Revenues & Benefits) 52 52 0 51 0 51 51 51 51 49 0 0 202 School Audio-Visual (AV) Equipment Replacement Programme 50 27 23 173 23 196 191 196 35 35 35 300 471 1,072 Mosaic - Swift Social Work System Replacement 950 837 113 1,355 113 (95) 1,373 153 1,373 172 177 653 0 0 2,375 Revenue Contribution 0 0 (50) 0 9 (41) (41) (124) (124) 0 0 0 (289) Hardware 16 9 7 15 7 22 2 22 15 14 14 25 25 115 Licenses 152 184 (32) 112 (32) 80 80 95 71 71 75 75 467 MIS - SEEMIS Licensing 745 745 0 0 0 0 0 0 0 0 0 0 0 Case Management System 0 0 0 0 80 80 80 0 0 0 0 0 80 TOTAL - CUSTOMER & DIGITAL SERVICES 5,681 5,430 251 10,170 251 (2,383) 8,038 634 8,038 6,187 5,145 10,413 8,502 5,911 44,196 HEALTH & SOCIAL CARE Occupational Therapy Equipment 350 350 0 250 0 50 300 300 250 250 150 250 200 1,400 Technology Enabled Telecare 650 665 (15) 1,625 (15) (1,000) 610 188 610 1,088 1,087 1,087 1,000 0 4,872 Moving & Handling Office Refurbishment 0 0 29 0 (29) 0 0 29 0 0 0 0 29 Software Licences 53 54 (1) 53 (1) 52 14 52 53 53 69 70 70 367 Developing Supported Tenancies 0 0 229 0 (229) 0 0 229 0 0 0 0 229 TOTAL - HEALTH & SOCIAL CARE 1,053 1,069 (16) 2,186 (16) (1,208) 962 202 962 1,649 1,390 1,306 1,320 270 6,897 TOTAL COMPOSITE NET EXPENDITURE 136,557 125,340 11,217 198,184 11,217 (37,428) 171,973 41,492 171,973 112,275 130,576 77,897 61,647 44,842 599,210 (NET OF GRANTS, REVENUE AND 3RD PARTY CONTRIBUTIONS, AND RING FENCED RECEIPTS) CAPITAL INCOME & RECEIPTS General Capital Grant - Scottish Government (22,699) (20,944) (1,755) (24,078) (1,755) 1,056 (24,777) (9,436) (24,777) (13,239) (19,255) (12,750) (12,750) (12,750) (95,521) Developer Contributions (2,847) (1,440) (1,407) (2,300) (1,407) (3,707) (3,707) (2,367) (2,600) (2,600) (2,500) (2,500) (16,274) General Fund - Capital Receipts/Disposal (801) (1,486) 685 (419) 685 (742) (476) (199) (476) (444) 0 0 0 0 (920) Commercial Property - Capital Receipts/Disposal 0 1 (1) (712) (1) 0 (713) (69) (713) (430) 0 (1,088) 0 0 (2,231) Total: Capital Receipts (26,347) (23,869) (2,478) (27,509) (2,478) 314 (29,673) (9,704) (29,673) (16,480) (21,855) (16,438) (15,250) (15,250) (114,946) Annual Composite Borrowing Requirement 110,210 101,471 8,739 170,675 8,739 (37,114) 142,300 31,788 142,300 95,795 108,721 61,459 46,397 29,592 484,264 CAPITAL RECEIPTS BROUGHT FORWARD (2,245) (2,245) 0 (1,872) 0 (230) (2,102) (2,102) (2,102) (1,120) (1,550) (1,550) (2,638) (2,638) (2,102) CAPITAL RECEIPTS CARRIED FORWARD 1,872 2,102 (230) 1,120 (230) 230 1,120 471 1,120 1,550 1,550 2,638 2,638 2,638 2,638 TOTAL NET COMPOSITE BORROWING REQUIREMENT 109,837 101,328 8,509 169,923 8,509 (37,114) 141,318 30,157 141,318 96,225 108,721 62,547 46,397 29,592 484,800 Page 78 of 132
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Project Project Description ENVIRONMENT & INFRASTRUCTURE Traffic & Road Safety Road Safety Initiatives (20mph Zones etc.) A programme of works to improve road safety Road Safety Initiatives - A94 Safety Improvements A programme of works to improve road safety Active Travel Grant - Traffic & Road Safety Schemes A programme of works to improve active travel Additional Road Safety - Pedestrian Crossings A programme of works to provide pedestrian crossing facilities Schools Road Safety Measures A programme of works to improve road safety in the vicinity of schools 20mph Signage Programme - Schools A programme of works to improve road safety in the vicinity of schools 20mph Signage Programme A programme of works to introduce 20mph speed limits. Car Parking Investment Construction of new car park in Auchterarder Car Parking Investment - Pitlochry Purchase of land and construction of a public car park Roads & Lighting Structural Maintenance Road maintenance to extend the life of roads, including predominately road resurfacing, surface dressings, installing new drainage infrastructure and repairs to and replacement of defective embankments and retaining walls Traffic Signal Renewals - Upgrading A programme of works to upgrade existing traffic signal infrastructure Footways Replacement of existing deteriorated footway surfaces Street Lighting Replacement of existing street lighting lanterns, columns and cable network. Investment in Local Footpaths A programme of works to improve and provide local footpaths Road Safety Barriers Renewal of existing barriers where unrecoverable damage has occurred and renewal of barriers where timber posts have been used in construction Bridges Bridge Refurbishment Programme Used to appoint specialist external inspection teams and consultants to carry out specialist access bridge inspections and assessments Vehicular Bridge Parapets Programme - Assess & Upgrade Assessment and Upgrading of Vehicle Parapets Programme Old Perth Bridge - Strengthening Carry out works recommended by the 2018 Bridge Assessment study, including a range of assessment, investigation, strengthening and improvement works Perth Queens Bridge - Strengthening Carry out works recommended by the 2018 Bridge Assessment study, including a range of assessment, investigation, strengthening and improvement works Garry Viaduct Replacement of Bearings and Parapets; including strengthening of deck for bearing replacement jacking up, and to cater for increased parapet vehicular deterrent capacity Culteuchar Culvert Replace existing temporary steel bridge (on hire) with culvert Improvement Schemes A977 Upgrades A programme of works to improve road safety along the A977. Broich Road, Crieff - Road Realignment & Safety Measures Complete Rural Flood Protection Schemes Almondbank Flood Protection Scheme Substantially complete Perth Flood Protection Scheme (South Inch Culvert Reinstatement) Ground investigation and monitoring then design project to refurbish existing culvert Comrie Flood Protection Scheme Design and construction of a scheme to reduce the risk of flooding in Comrie Milnathort Flood Protection Scheme Design and construction of a scheme to reduce the risk of flooding in Milnathort South Kinross Flood Protection Scheme Design and construction of a scheme to reduce the risk of flooding in South Kinross Scone Flood Protection Scheme Design and construction of a scheme to reduce the risk of flooding in Scone Flood Mitigation Measures - Dunkeld and Craigie Burn Design and construction of schemes to reduce the risk of flooding in Dunkeld and Craigie Burn Coastal Change Adaptation Design and construct projects to deal with incidents of coastal erosion Climate Change Nature Restoration Protection and restoration of biodiversity focusing on over-exploitation of the natural environment and addressing its consequences; habitat loss and fragmentation; and invasive non-native species. Waste Strategy Recycling Improvement Fund External Scottish Government funding (Recycling Improvement Fund) to roll out 4th bin to householders for recycling Prudential Borrowing Projects Wheeled Bin Replacement Programme - Domestic Bins Replacement of damaged and end of life wheeled bins for households. Also suppling bins for new properties Wheeled Bin Replacement Programme - Commercial Bins Replacement of damaged and end of life wheeled bins for commercial customers. Also suppling bins for new customers and changes to collection contracts Recycling Containers, Oil Banks & Battery Banks Replacement Programme Replacement of damaged and end of life oil and battery banks Page 79 of 132
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Project Project Description Litter Bins Replacement of damaged and end of life litter bins and/or for general supply of litter bins where required. Vehicle Replacement Programme Fleet vehicle replacement programme Street Lighting Renewal - LED & Column Replacement Street Lighting LED conversion and column replacement programme HOUSING & COMMUNITIES Community Greenspace Play Areas - Improvements Implementation Strategy Regular refurbishment of 146 play areas based on approx. 6-8 per year. Involves community engagement and often co-funding and design of the sites 3G Pitch, Blairgowrie Two phase community led project to provide a new full sized 3G football pitch and pavilion Settlement/Neighbourhood Parks Refurbishment of neighbourhood parks working in partnership with communities to improve, update and renew worn out or obsolete infrastructure Countryside Sites Refurbishment of more natural parks and open spaces Community Greenspace Sites Main fund for all Community Greenspace Sites which is drawn down to support the overall capital programme of refurbishments and upgrades Community Greenspace Bridges Refurbishment programme for all bridges on Community Greenspace sites Core Path Implementation Holding budget for Crieff Comrie Core path development mainly funded through Sustrans Premier Parks Small budget to facilitate refurbishment of former Premier Park upgrades Auchterarder Public Park Major play area upgrade co-funded and designed with the community Kinnoull Hill Complete Cemetery Extensions Funding to allow the extension of existing or development of new cemeteries to address the pressure for burial space Housing Projects Gypsy Travellers Site Improvement Works Programme of works for improvements on Gypsy Traveller sites at Bobbin Mill and Double Dykes Additional Gypsy Traveller Site Improvement Works Additional funding to support improvements works programme on Gypsy Traveller sites New Gypsy Traveller Site Feasibility Study for Gypsy Traveller Transient Site Public Transport Community Transport Iniatives Purchase of vehicles and charging infrastructure for community transport/resilience groups to use to deliver on unmet need in the local area. Community Planning Community-Led Asset Transfers Financial assistance for community groups wishing to take on PKC assets using the community asset transfer process ECONOMY, DEVELOPMENT & PLANNING Improvement schemes A9/A85 Road Junction Improvements New infrastructure including a new A9 overbridge, a bridge over the River Almond and road linking the A85 to Inveralmond and Bertha Park (Phase 1 of Perth Transport Futures Project) - complete Cross Tay Link Road (CTLR) New road and major structure over the River Tay, linking the A9 north of Inveralmond and the A94 north of Scone (Phase 2 of Perth Transport Futures Project). Bertha Park Link Road Phase 3 of Perth Transport Futures Project which is a new link road (1.4km) running through Bertha Park, connecting Phases 1 and 2. Status - specimen design underway. Perth & Kinross Place-making Mill Street Environmental Improvements Potential compensation payments associated with claims against compulsory land acquisition to enable delivery of environmental improvements to stimulate and support development and investment Perth, Place, People Design and development of sustainable transport corridors to improve access to and from Perth and enable additional development and improvement within Perth city centre Perth City Centre Golden Route (Rail Station) Design and development of improvements to access, signage and animation from rail and bus station to Perth city centre to complement improvements to integration of transport City Greening Improvements to support enhancement of retail trading environment and residential areas and enhanced use of space for markets, events and alfresco use Perth & Kinross Lighting Action Plan Architectural and creative lighting to enhance city and towns appearance, reduce energy cost and increase safety at nighttime to increase dwell time, support the hospitality sector, events and grow the evening economy Page 80 of 132
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Project Project Description Other Planning Projects Creative Exchange (former St. John's Primary School) Repurposing old school to offer space to creative industry businesses and create the Famous Grouse Idea Centre, a space to support business innovation. Complete Local Full Fibre Network Provision of gigabit fibre connectivity to Council's buildings to unlock gigabit connectivity for surrounding communities. Completed Low Carbon Transport & Active Travel Hub - Broxden EV Chargers Provision of fast EV chargers combined with solar power generation and battery storage at Broxden Park & Ride - Near completion Perth Eco-Innovation Park at Perth West Provision of enabling infrastructure (access road, A9 underpass and unit platforms) to develop 25ha of employment land supporting clean growth, business innovation and jobs - Phase 1 (11ha) - In development Economic Development Investment - Land & Serviced Units Provision of serviced lands and business units - Additional business units (eg Northfields Business Park and Kinross Business Park) - procurement for design in progress followed by construction. Adapt Your Property - Vacant Town & City Centre Space Adapt Your Property supports capital adaptation works to empty and underused commercial property in city & town centres, looking at adaptation to attract new commercial, community or residential use. Commercial Property Investment Programme North Muirton Industrial Estate - Site Servicing & Provision of Units Only road adoption works remaining Broxden Business Park - Additional Infrastructure Only road adoption works remaining Western Edge, Kinross - Site Servicing Only road adoption works remaining Broxden Drainage Mitigation Works Drainage/pumping station works underway and subject to agreement/contribution from Scottish Water Ruthvenfield Business Centre Works on redevelopment in progress North Muirton Drainage Drainage/pumping station underway Prudential Borrowing Project Land Purchase & Development (Hotel Development) Development agreement secured and release of grant for heritage subject to progression through planning and cost evidence STRATEGY, PEOPLE & RESOURCES Property Services - Project Support Investment in the Learning Estate Investment to upgrade the infrastructure and environment of our existing school estate Methven Primary School Refurbishment Upgrade of Methven Primary School facilities Breadalbane Academy, Aberfeldy - 3G Pitch Additional investment required to upgrade 2G to 3G Kirkmichael Primary School Upgrades Upgrade of Kirkmichael Primary School facilities Early Learning & Childcare - Letham Primary School Upgrade Project 1140 hrs project plus upgrade of primary school infrastructure - Completed - Oakbank Primary School Upgrade Project 1140 hrs project - Completed - Rattray Primary School Upgrade Project 1140 hrs project plus upgrade of primary school infrastructure - Completed North/West Perth - New Primary School New primary school located at Bertha Park Riverside Primary New School Replacement of North Muirton and Balhousie primary schools Perth Academy - Refurbishment Investment to upgrade the infrastructure and environment of the Perth Academy including structural work to sports block, lighting upgrades, classroom upgrades and science block cladding Perth Grammar School - Upgrade Programme Phase 3 Investment to upgrade the infrastructure and environment of the Perth Grammar School including structural work to assembly hall, AV and WiFi upgrades, classroom refurbishment and door upgrades Perth High School - Internal Services & Refurbishment Necessary works to the infrastructure and environment of the current Perth High School Perth High School - New School Investment Replacement of the existing Perth High School Harris Academy/Invergowrie - Extension Extension and reconfiguration of existing space at Harris Academy in Dundee for continuation of access for pupils based in Invergowrie Blairgowrie Recreation Centre - Replacement Replacement of the Recreation Centre in Blairgowrie Technology Upgrades Upgrade to practical teaching environment within the existing school estate Property Services - Projects & Contracts Free School Meal Expansion Programme Upgrading kitchen and dining facilities to provide the enhanced Free School Meals programme Community Campus Access Adaptations To support adaptations in schools and community campuses to help facilitate increased community access Property Services - Property Service Manager DDA Adaptation & Alteration Works Programme To provide unhindered accessibility to all Council Buildings - e.g. Ramps/Lifts/Door Access/Accessible Toilets and Changing Areas Property Compliance Works Programme To ensure compliance with current and changing legislation including - New Fire Alarms; Lighting; Wiring; Fire Protection Works; Gas pipework within buildings and Roof Restraint safety systems Page 81 of 132
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Project Project Description Capital Improvement Projects Programme Roof Upgrades; Full internal refurbishment works; New Heating Systems; Boilers and pipework; Structural Upgrades; Small extensions; New Windows/Doors; New Fencing; New Cladding Pitlochry High School - Upgrade Programme Upgrades to Mechanical and Electrical Infrastructure, including rewiring, heating and controls systems, replacement lighting and consequential building works such as new ceilings, painting and flooring Friarton Depot - Waste Transfer Station This project aims to refurbish the main waste transfer station building to provide a safe environment for workers. The project will involve a complete re-cladding of the existing structure, new doors and new services installation. Some initial enabling work are being carried out currently. Energy Efficiency Works - Various Properties Focusing on a spend to save with projects aiming to reduce energy cost across the property estate Letham Community Wellbeing Hub Refurbishment of Letham Wellbeing Hub to offer a range of services to the local community managed by Letham4All - scheduled for completion end 2023 PH2O Replacement of Perth Leisure Pool and Dewars Ice Rink. On hold pending outcome of Leisure and Culture Assets Review Perth Museum Refurbishment of Perth City Hall to create new museum spaces and cafe. Main construction phase complete and install/fit out on schedule for planned opening spring 2024 Perth Art Gallery Refurbishment of temporary galleries - scheduled for completion November 2023 Prudential Borrowing Projects Decarbonisation This budget will support PKCs path to NetZero and focus primarily on the de- carbonisation of heat and replacing inefficient direct emissions heat sources Energy Conservation & Carbon Reduction Programme This budget is focused on works to reduce PKC energy consumption and help achieve annual KPI energy reduction of 3% Customer & Digital Services ICT Infrastructure & Replacement and Upgrade Programme This Programme delivers the IT / digital environment, digital resources and systems required by staff and young people. The programme maintains, supports and develops computers; networks; telephony; Microsoft systems; connectivity and equipment; datacentres; servers; file storage and back up; security systems and video conferencing Data & Analytics Delivers the governance, tools, technologies and organisation-wide skills required for optimising value from Council data, driving informed decision making around resources, priorities and service delivery targets Supporting Digital Develops the capabilities we need to be an innovative digital organisation. Including developing the Council’s corporate employee (mobile working) and customer (online services) platforms, to create new digital products and services; investment in tools such as Microsoft; resourcing innovation and building digital skills, insight and expertise Software Licences (Revenues & Benefits) NAC Live system licensing for Revenues & Benefits team School Audio-Visual (AV) Equipment Replacement Programme Ensures all Perth and Kinross classrooms have equitable access to audio visual panels and the digital skills to exploit these resources for learning and teaching Mosaic - Swift Social Work System Replacement Purchase and Development of a new Social Work system to replace SWIFT Hardware Funding of additional or bespoke IT Hardware for Communities Staff Licenses Funding of software contracts MIS - SEEMIS Licensing Licencing of Schools Management Information System Case Management System New system to management client cases HEALTH & SOCIAL CARE Occupational Therapy Equipment Supply and install of occupational therapy equipment following referral from heakth and social care professionals. Technology Enabled Telecare Replacement of existing analogue Community Alarm devices to digital alarm units prior to UK switch-off of analogue network, as well as ongoing rolling replacement programme. Moving & Handling Office Refurbishment Relocate staff base, currently under review Software Licences Various licences for essential social care systems Developing Supported Tenancies Contribution towards flagship core and cluster facility for adults with learning disabilities’ Page 82 of 132
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APPENDIX III Approved Actual Proposed Approved Proposed Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Expenditure Carry Budget Brought Budget Budget to Outturn Budget Budget Budget Budget Budget 24-Apr-24 Forward 24-Apr-24 Forward Adjustment 31-Jul-24 to from Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 2023/24 2023/24 2024/25 2024/25 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL £'000 £'000 £'000 £'000 (£'000) £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Council House New Build Programme Glebe, Scone - 65 Units 17 11 6 0 6 (6) 0 0 0 0 0 0 0 Council Tax (Second Income) 0 0 0 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 0 0 0 17 11 6 0 6 (6) 0 0 0 0 0 0 0 0 Huntingtower, Perth - 70 Units 1 1 0 0 0 0 0 0 0 0 0 0 Council Tax (Second Income) 0 0 0 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 Fairfield, Perth 251 243 8 0 8 (4) 4 4 0 0 0 0 4 Council Tax (Second Income) 0 0 0 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 0 0 0 251 243 8 0 8 (4) 4 0 4 0 0 0 0 4 Lynedoch Road, Methven - Phase 1 735 733 2 0 2 (2) 0 0 0 0 0 0 0 Council Tax (Second Income) 0 0 0 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 0 0 0 735 733 2 0 2 (2) 0 0 0 0 0 0 0 0 Lynedoch Road, Methven - Phase 2 1,334 1,331 3 1,172 3 1,175 619 1,175 0 0 0 0 1,175 Council Tax (Second Income) 0 0 (240) 0 (240) (240) (240) 0 0 0 0 (240) Scottish Government Subsidy (1,243) (1,243) 0 0 0 0 0 0 0 0 0 0 91 88 3 932 3 0 935 379 935 0 0 0 0 935 Beechgrove, Perth 0 400 (400) 0 (400) 400 0 0 0 0 0 0 0 Council Tax (Second Income) 0 0 0 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 (400) 400 0 400 (400) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Balhousie, Perth 0 320 (320) 0 (320) 320 0 0 0 0 0 0 0 Council Tax (Second Income) 0 0 0 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 (320) 320 0 320 (320) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Future Developments 0 1 (1) 5,091 (1) 5,090 5,090 6,014 6,014 10,292 6,014 33,424 Council Tax (Second Income) 0 0 0 0 0 0 0 0 0 0 0 Scottish Government Subsidy 0 0 0 0 0 0 0 0 0 0 0 0 1 (1) 5,091 (1) 0 5,090 0 5,090 6,014 6,014 10,292 6,014 33,424 Total Council House New Build 1,095 1,077 18 6,023 18 (12) 6,029 379 6,029 6,014 6,014 10,292 6,014 34,363 Increase in Council House Stock Council House Buy-Backs 6,934 7,094 (160) 4,000 (160) 1,365 5,205 4,864 5,205 4,000 4,000 4,000 4,000 21,205 Scottish Government Subsidy (1,680) (1,645) (35) 0 (35) (1,365) (1,400) (1,400) 0 0 0 0 (1,400) 5,254 5,449 (195) 4,000 (195) 0 3,805 4,864 3,805 4,000 4,000 4,000 4,000 19,805 Lock-ups and Garage Sites 0 0 0 50 0 50 50 0 0 0 0 50 Standard Delivery Plan Heating Upgrade Contract Works 1,033 803 230 1,105 230 1,335 133 1,335 1,320 811 0 0 3,466 Rewiring, Infrastructure & Property Refurbishment 665 723 (58) 1,686 (58) 1,628 147 1,628 850 0 0 0 2,478 Triple Glazing 5,066 5,218 (152) 300 (152) 968 1,116 990 1,116 0 0 0 0 1,116 - less Third Party Contribution 0 (1) 1 0 1 (1) 0 0 0 0 0 0 0 Controlled Door Entry 17 20 (3) 11 (3) 26 34 19 34 0 0 0 0 34 - less Third Party Contribution 0 0 0 0 (5) (5) (5) 0 0 0 0 (5) Kitchen Modernisation Programme 374 526 (152) 1,504 (152) 1,352 241 1,352 2,025 0 0 0 3,377 Bathroom Modernisation Programme 1,436 1,688 (252) 0 (252) 1,250 998 240 998 0 0 0 0 998 HRA CAPITAL INVESTMENT PROGRAMME SUMMARY OF CAPITAL RESOURCES AND EXPENDITURE 2024/25 to 2028/29 PERTH AND KINROSS COUNCIL 6 Page 83 of 132
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APPENDIX III Approved Actual Proposed Approved Proposed Proposed Revised Actual Projected Revised Revised Revised Revised Revised Budget Expenditure Carry Budget Brought Budget Budget to Outturn Budget Budget Budget Budget Budget 24-Apr-24 Forward 24-Apr-24 Forward Adjustment 31-Jul-24 to from Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 Report 1 2023/24 2023/24 2024/25 2024/25 2023/24 2024/25 2024/25 2024/25 2024/25 2025/26 2026/27 2027/28 2028/29 TOTAL £'000 £'000 £'000 £'000 (£'000) £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 External Fabric 993 875 118 0 118 1,342 1,460 185 1,460 0 0 0 0 1,460 - less Third Party Contribution (35) (100) 65 0 65 (142) (77) (77) 0 0 0 0 (77) Energy Efficiency 940 856 84 388 84 472 88 472 0 0 0 0 472 Multi Storey Flats 428 408 20 1,815 20 1,835 5 1,835 0 0 0 0 1,835 Environmental Improvements 1,049 1,022 27 0 27 245 272 261 272 0 0 0 0 272 Fire Precaution Measures 175 196 (21) 224 (21) (120) 83 12 83 0 0 0 0 83 - less Third Party Contribution 0 0 0 0 (20) (20) (20) 0 0 0 0 (20) Sound Insulation 0 0 389 0 389 389 42 0 0 0 431 Structural 15 9 6 250 6 256 8 256 985 0 0 0 1,241 SHQS Future Developments 0 0 0 0 0 0 4,066 4,808 5,553 3,351 17,778 Total Standard Delivery Plan 12,156 12,243 (87) 7,672 (87) 3,543 11,128 2,329 11,128 9,288 5,619 5,553 3,351 34,939 Other Investment in Council House Stock Total Major Adaptations to Council House Stock 82 94 (12) 22 (12) 10 1 10 0 0 0 0 10 Rannoch Road, Perth - Housing Regeneration 27 26 1 60 1 144 205 1 205 0 0 0 0 205 149-151 Dunkeld Road, Perth 277 257 20 0 20 20 20 0 0 0 0 20 111 Rannoch Road, Perth (Former Driving Test Centre) 8 4 4 0 4 (4) 0 1 0 0 0 0 0 0 St.Catherine's Square Redevelopment 0 0 3,393 0 3,393 3,393 0 0 0 0 3,393 Shops & Offices 0 0 50 0 50 50 239 0 0 0 289 Greyfriars and Satellite Sites 2 2 0 50 0 50 9 50 32 0 0 0 82 Sheltered Housing 11 20 (9) 0 (9) 9 0 0 0 0 0 0 0 Double Dykes Chalet Replacement 71 86 (15) 0 (15) 5,964 5,949 51 5,949 573 0 0 0 6,522 - Scottish Government Grant (71) (71) 0 0 0 (3,426) (3,426) (19) (3,426) 0 0 0 0 (3,426) General Capital Works 120 120 0 0 0 147 147 12 147 0 0 0 0 147 Upgrade and Replacements to Lifts Programme 21 16 5 116 5 121 121 0 0 0 0 121 ICT Expenditure 21 9 12 50 12 62 62 110 0 0 0 172 Mortgage to Rent 175 0 175 50 175 90 315 141 315 0 0 0 0 315 - less Government Grant 0 0 0 0 0 (90) (90) (90) (90) 0 0 0 0 (90) Total Other Investment in Council House Stock 744 563 181 3,791 181 2,834 6,806 107 6,806 954 0 0 0 7,760 Total Net Expenditure 19,249 19,332 (83) 21,536 (83) 6,365 27,818 7,679 27,818 20,256 15,633 19,845 13,365 96,917 Income CAPITAL RECEIPTS (11) (11) 0 0 0 (5) (5) (5) (5) 0 0 0 0 (5) CFCR (2,335) (2,335) 0 (1,833) 0 (1,833) (1,833) (2,078) (2,004) (2,125) (2,340) (10,380) TOTAL BORROWING REQUIREMENT 16,903 16,986 (83) 19,703 (83) 6,360 25,980 7,674 25,980 18,178 13,629 17,720 11,025 86,532 Page 84 of 132
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SIGNIFICANT CAPITAL PROJECTS PROGRESS UPDATE APPENDIX IV Project Title Total Gross Budget (£'000) Third Party Funding (£'000) Total Net Budget (£'000) Projected Outturn (£'000) Completion Date Contract Awarded On Site Status Change Since Last Report Additional Commentary Blairgowrie Recreation Centre - Replacement 36,000 0 36,000 36,000 Easter 2025 - new centre currently scheduled to open late 2024 Yes Yes On track Yes - on-site. Works are progressing well on-site. North/West Perth New Primary School* 24,000 0 24,000 24,000 Summer 2026 No No On track Yes. Project has been put on hold for 2 years due to slow build out rates at Bertha Park. Riverside Primary New School 19,899 0 19,899 19,899 Early summer 2023 Yes Yes Phase 2 On Track Yes - School operational. Project complete. Perth High School - New School Investment 80,200 0 80,200 80,200 Summer 2026 - school building curently scheduled to open summer 2025 Yes Yes On track Yes - on-site. Works are on programme. Harris Academy/Invergowrie Extension 5,200 0 5,200 5,200 Late 2023 Yes Yes On track Yes. Main extension complete, reconfiguration works still to be undertaken. Cross Tay Link Road (CTLR) 150,500 40,000 110,500 110,500 Spring 2025 Yes Yes On programme No Works progressing well and project remains on programme for completion in Spring 2025. No significant movements in projected spend. Construction of the Destiny Bridge segments is near completion thus the main structural elements of the bridge will shortly be complete. Works elsewhere continue. Monthly risk meetings continue with T&T. Detailed analysis of costs and risks due to take place with Finance in coming months given the significant risks relating to the structure have reduced. Comrie Flood Protection Scheme 40,821 32,657 8,164 8,164 Autumn 2026 Yes No Contract awarded Yes Detailed design completed April 2023. Preliminary advance works completed in July 2023. The main works were originally tendered in June 2023 but timed-out. The main works were re-tendered and returned in June 2024. Tender price higher than anticipated; Scottish Government updated prior to contract award on 21 August 2024. Works to commence from September 2024 for approximately 2 years. Perth Eco Innovation Park* 32,817 11,275 21,542 21,542 Not currently programmed No No Preliminary design works completed Yes Following the application for Levelling Up Fund Grant funding of £10m being unsuccessful, the Council approved a net increased of £10m on 1 March 2023 however the balance of £20m remains unfunded. Further contributions and receipts are anticipated in years beyond the current programme to 2027/28. Approval to spend £1.55m on the inital design works (including planning application) was given in June 2024. Associated work package due to be awarded to consultant in August 2024. Discussions continue with JDLT. * Third Party Funding excludes Developer Contributions and receipts to be received in future years beyond the current 5-year programme. 6 Page 85 of 132
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PERTH & KINROSS COUNCIL FINANCE & RESOURCES COMMITTEE 18 SEPTEMBER 2024 TRANSFORMATION AND CHANGE PROGRAMME UPDATE Report by Strategic Lead - Projects and Programmes (Report No. 24/262) 1. PURPOSE 1.1 This report provides an update to the Finance and Resources Committee on the progress of the Transformation & Change programme to date along with benefits realised in phase one. 1.2 In addition, the report includes a number of actions underway from 1 July 2024 to progress the programme into phase two including: • Development of a formalised Programme Management Office which will have responsibility for oversight, monitoring and reporting of the Programme. • Planning for a variety of development and support opportunities being provided / offered for Project Teams with Service Design principles at the centre of the programme. • Definitive Phase 2 programme outline with individual projects being consolidated into a full portfolio approach. • General risks associated with the programme. 2. RECOMMENDATIONS 2.1 It is recommended that the Finance and Resources Committee: (a) Approve that Phase One of the Transformation and Change programme is complete, and that delivery of Phase two is now underway and will continue to evolve as we progress (b) Note the benefits realised in phase one of programme (c) Approve phase two approach with the development of a formal Programme Management Office (PMO) model (d) Note the overarching governance structure for the Programme. 3. STRUCTURE OF THE REPORT 3.1 This report is structured over the following sections: Section 4: Background Section 5: Phase one summary Section 6: Phase two proposals Section 7: Conclusion Appendix 1 – phase one benefits realised Appendix 2 – phase two programme list 7 Page 87 of 132
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4. BACKGROUND 4.1 In June 2022, the Council approved the Transformation & Change Strategy allowing the development of the Transformation and Change programme, to support the delivery of the Council’s vision of “a Perth and Kinross where everyone can live life well, free from poverty and inequality”, together with the strategic priorities and key objectives outlined in the Corporate Plan 2022- 2027. 4.2 The overarching aim of the Transformation and Change programme is to support the delivery of services to the people of Perth and Kinross, particularly those in greatest need. Council agreed that the programme would be developed and phased over a five-year period with workstreams undertaken in Phase One being key to setting the successful foundation for the delivery of the programme in future. 4.3 There are currently four different approaches included under the overarching banner of transformation and change: • Transformation – changing the way that we work which will be significantly different from current ways of working e.g., a marked change in the form, nature, and appearance of the services we deliver, how and where we deliver them. • Service Improvements –improved ways of working led by teams and services to deliver better outcomes for communities, improved efficiency, and productivity. • Re-structure and consolidation – changing the way services and teams are configured to deliver better outcomes and service priorities. • Budget efficiencies - budget and service reductions to work within the financial constraints facing the Council, whilst focusing on agreed priority areas. 4.4 Over the past two years, there have been a number of day-to-day service improvements and budget efficiencies realised by individual services and teams. Details of these changes, savings and improvements are reflected in our Annual Performance Report due to be reported to Council in October. Our Transformation & Change Programme Management Office have responsibility for supporting, co-ordinating and reporting on the progress of complex transformational projects which in some cases have many workstreams, interdependencies across the organisation and requirement for cross team working. 4.5 From July 2022, we have progressed through Phase One of the programme using a combination of these approaches, allowing us to make savings, shift expenditure to cover emerging new priorities and help deliver a balanced budget. Areas of particular focus over this time have been the Senior Leadership Review and consolidation workstreams, bringing together areas of corporate and operational work where there are particular similarities, overlap or synergies. Page 88 of 132
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4.6 We have also made progress in the cultural change programme which has been designed to overarch and support transformation & change work within the organisation and will also continue to be delivered into Phase T.wo. Workstreams have been designed to support our staff, set the right conditions, and enable behavioural change as we move through our transformation programme. We have continued to focus on our purpose, vision and values ensuring that these are reflected in our behaviours and that we are all responsible for and working in a culture where everyone is valued and treated with respect. 4.7 It is important that our Transformation and Change Programme remains flexible with the ability to adapt to changes in the local and national policy and legislative landscape where required. This can, at times impact on the speed of delivery but ensures that we continue to put our corporate priorities at the forefront of the project, focussing on the key areas for change and improvement. We are also focussing our resources in this area to ensure we are prioritising those areas of transformation which will have the greatest reach and impact 4.8 As we move forward into Phase Two of the programme, we will continue to formally report to Finance & Resources Committee on progress, twice a year. In addition, a series of quarterly member briefings which focus on specific projects are being scheduled for Elected member participation, discussion and information. 5. PHASE ONE SUMMARY 5.1 We have regularly reported on the progress of the phase one Transformation & Change programme since 2022 with a full report being presented to F&R Committee in September 2023 (Report No. 23/245). Following this, an update was reported to full Council on 28 February 2024 (Report 24/63 Refers) with phase one project comprising: • Finance consolidation • Property consolidation • Strategic Planning and Performance consolidation • Human Resources and Organisational Development consolidation • Customer Services consolidation • Press and Communications consolidation • Professional and Business Support Phase 1 • Community Engagement • Strategic Commissioning and Procurement 5.2 All of the consolidation workstreams have now concluded in line with the Senior Leadership restructure and these changes have been embedded within the organisation. Further to this, we have started to develop the redesign projects for some of the areas above and in particular, the last three projects named will carry forward into Phase Two and updates to Committee on progress will continue. Page 89 of 132
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Senior Leadership Review 5.3 The Senior Leadership Review was the most significant undertaking in phase one of the programme as an overarching organisational programme in itself. The Review progressed the design and delivery of a new structure for senior leadership and was a significant undertaking which was approved in June 2023 at full Council, implemented from August 2023 and finalised from 1 April 2024. Recent changes in August 2024 to the Executive Leadership Team structure will result in additional savings that will be reported in due course. 5.4 The Strategic Leadership Team (SLT) has realigned responsibilities and resources which will form part of individual Phase Two redesign projects and review the Council’s internal governance arrangements, including the introduction of themed boards linked to Corporate Plan priorities. There is also a greater emphasis on community engagement, service redesign and cultural change going forward. 5.5 This review has resulted in significant savings of around £789,000 per annum and fully realised as a cumulative total of £2.255 million in 2026/27: 2023/24 £’000 2024/25 £’000 2025/26 £’000 2026/27 £’000 Annual Saving 138 664 664 789 Cumulative saving 802 1466 2,255 Consolidation Workstreams 5.6 Driven by the need to take a more collaborative approach across all areas of the organisation, as already referenced, Phase One included nine consolidation workstreams as set out above and brought together teams historically disaggregated under newly formed single points of management. This has already addressed areas of duplication, delivered on initial financial savings, introduced the opportunity for greater consistency and allowed for better accessibility to the people we serve. These projects are now complete, however in keeping with the Leadership Development programme in Phase Two, there will be many areas carried over as service structure redesign projects. Phase one savings related to consolidation projects have been reported as follows: Page 90 of 132
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23/24 £’000 24/25 £’000 25/26 £’000 Total £’000 Finance 69 131 284 484 Business Support 112 166 279 557 Leadership 132 0 0 132 Property 0 45 78 123 Performance 20 54 72 146 HR/OD 40 35 276 351 Strategic Commissioning 0 74 100 174 CIAM 64 0 0 64 437 505 1,089 2,031 Cultural Change 5.7 The cultural change programme – Phase One has concentrated in three specific areas: • Employee engagement • Leadership Development • Communications 5.8 A number of different initiatives were introduced to embed our values and behaviours including the Employee Experience which was a three-hour workshop concentrating on our strategic direction, values and behaviours as well as how to be the “eyes and ears” of PKC. These sessions were attended by approximately 80% of the organisation which has been our most successful and well attended organisational development initiative to date. Staff evaluation responses indicated a score of 4.7/5 in terms of satisfaction and relevant content. 5.9 A leadership development programme with a series of specific ‘masterclasses’ was also introduced for all those with line management responsibilities. These included an introduction to coaching, resilience skills and how to hold direct discussions. Further initiatives included learning and listening sessions with the Executive Leadership Team, an updated Employee Induction programme with a PKC marketplace highlighting the roles and responsibilities for various teams across the organisation and business breakfasts with the Chief Executive. 5.10 To gain critical employee feedback on cultural change, as well as other areas of the organisation, the first full staff survey since 2018 – there have been many smaller temperature checks in the intervening years – was open for responses to all staff from 15 April to Friday 31 May 2024. This provided feedback on many areas and gave an indication of the effectiveness and impact of the cultural change programme on employees. Page 91 of 132
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5.11 The response rate for the employee survey was 47%, a 20% increase significant increase on the 27% return on the last survey in 2022. Survey Highlights include: • 93% of respondents feel they are trusted to make appropriate decisions within their role • 93% of respondents believe that Perth and Kinross Council recognises and celebrates diversity and inclusion • 92% of respondents feel they have clear direction and know what’s expected of them • 92% of respondents feel they have opportunities within their team/school to share views and ideas • 91.5% of respondents feel their team demonstrates our values often/every day • Staff were asked to rank what was most important to them and their reasons for working with the Council and the top reason was ‘Making a Difference’ 5.12 As a result of areas for improvement, action plans are being collated for phase two of the cultural change programme with a collective commitment to taking these forward to support wider transformation and change workstreams. 5.13 Summary of Phase One benefits realised In addition to the Senior Leadership Review and consolidation workstreams a number of other benefits have been realised from transformation and change initiatives across the programme in phase one. These are detailed in Appendix 1 and summarise work in service improvement, budget savings and transformation & change workstreams. 6. PHASE TWO PROPOSALS Programme Management Office 6.1 At the inception of the programme in 2022, a temporary programme support team was put in place to develop the programme further, oversee its delivery and provide support and scrutiny to key workstreams. As well as managing the programme, the small team were also responsible for delivering the actions relating to our key priority of Tackling Poverty and progressing the transformation project on locality multi-disciplinary locality working. However, as the Senior leadership structure has been implemented through Phase one, this team has been refocussed on a range of wider organisational activities, sitting within the Strategic Planning, People and Performance service area. 6.2 This shift in focus gives us the opportunity to refresh the Transformation & Change Programme approach as we move into Phase Two. A new T&C Programme Management Office (PMO) model is currently being developed. The PMO will act as a centralised hub for T&C that ensures consistency of practice, agrees governance for the overarching programme, provides support and standardised tools and offers guidance to project teams. The PMO will Page 92 of 132
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provide guidance, support and co-ordination to individual programmes and projects to ensure success and strategic alignment with our key corporate priorities. 6.3 Overseeing the full transformation and change programme, the PMO will have responsibility for monitoring, ensuring appropriate governance, and providing programme assurance to Board. In addition, the PMO will: • Ensure the co-ordination of the different functional areas and look at common themes across the programme which may need to be addressed i.e. change to policies, systems etc. • Identify interdependencies and ensure projects are aligned to council priorities. • Advise on resource allocation across the programme. • Develop programme management methodology and provide professional and technical advice for the organisation. • Management of and reporting on progress of the programme to the PMO and the Board, highlighting issues and risks to delivery of intended outcomes and ensure benefits are realised. • Provide a scrutiny and challenge role. 6.4 Further to the above, moving forward into phase two, the PMO is committed to providing regular updates and briefings on the progress of the transformation and change programme to our elected members. While the formal reporting approach is necessary to ensure compliance with our commitments to savings, improvement and positive outcomes, it does not allow for discussion on our strategic direction in relation to projects and live challenges being experienced in delivery. Service Design approach 6.5 We are committed to using the principles and process of Service Design which is undertaken by many local authorities across Scotland and endorsed by the Scottish Government’s digital office. The vision for the Scottish Approach to Service Design is that the people of Scotland are supported and empowered to actively participate in the definition, design, and delivery of their public services (from policy making to live service improvement). This brings together national and local government, health, public bodies, charities and third sector, as well as the private sector. It’s important because we need to: • collaborate to deliver end-to-end service journeys for citizens. • work together to create the right conditions and a shared language. • make sure our design methods are inclusive and accessible for everyone, so that we encourage, empower, and enable all citizens to participate in designing the services they need. 6.6 There are clear principles around the service design approach which echo the commitments of key corporate priority “Working with our communities and partners and putting people first.” Page 93 of 132
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• We explore and define the problem before we design the solution. • We design service journeys around people and not around how the public sector is organised. • We seek citizen participation in our projects from day one. • We use inclusive and accessible research and design methods so citizens can participate fully and meaningfully. • We use the core set of tools and methods of the Scottish Approach to Service Design. • We share and reuse user research insights, service patterns, and components wherever possible. • We contribute to continually building the Scottish Approach to Service Design methods, tools, and community. 6.7 The Design Council’s Double Diamond model is a visual diagram showing these design stages and the importance of taking time to understand the problem before designing solutions. Each diamond shape illustrates the process of creating or exploring many possible ideas before refining these to the best idea. The first to confirm the problem, and the second to design the solution. 6.8 We are currently working with the Service Design Academy to develop learning opportunities for senior responsible owners, project managers and teams to understand and adopt the service design approach in transformation and change workstreams. In addition, two officers are undertaking the Professional Development Award in Service Design which will allow us to bring this expertise inhouse. Page 94 of 132
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Cultural Change 6.9 We have continued to progress the successful work which was embedded in phase one in this area as outlined above. Currently underway is a full Leadership Development Programme working to increase the skills and knowledge of Senior Leaders. In addition to this we are developing our Phase two Cultural change programme to support the delivery of transformation and change workstreams. This will include a follow up employee experience workshop, initiatives to embed a transformation and change mindset – including a virtual mailbox, employee newsletter and service design workshops for all employees. Phase 2 programme content 6.10 Phase two of the programme comprises of those projects identified in the Full Council report of 28 February 2024 along with projects carried forward from Phase one. In addition, there have been a number of additional projects identified for progressing in Phase two. A full list of phase two projects with a short description of expected outcomes is attached as Appendix 2. Projects can be broken down into three areas: Phase Two reported at Council as at 28 February 2024: • Additional Support Needs • Whole Family Wellbeing • ALEO’s • Public Transport • Professional & Business Support • Multi-disciplinary locality working • Working Smarter Phase One projects carried forward into Phase Two (consolidation to service redesign): • Redesign projects; Finance, Customer Services, Property, Strategic Planning, People & Performance • Commissioning & Procurement • Community Engagement Additional Phase Two projects identified: • Strategic Leadership – phase 2 • Corporate Landlord Model • Property structure redesign • Employability • Digital Transformation • Third Sector Review • Waste Management • Decarbonisation • Tayside Contracts Review Page 95 of 132
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6.11 Further work is now being progressed by the PMO, SRO’s and the Board to develop a portfolio management approach to delivering the programme. Working in Partnership and collaboration 6.12 The Transformation and Change programme is seeking new innovative ways of working internally and externally with partners and colleagues to ensure we meet the aims and objectives of our Strategy. In doing this, the PMO will highlight areas of interdependencies across projects and programmes to ensure joint working and engagement with all relevant stakeholders. As our projects are complex and overarch more than one service area, workshops will be held to identify current areas of overlap and progress plans to work strategically with a unified approach. HSCP Transformation & Change Programme 6.13 The Health and Social Care Partnership are taking forward their own Transformation & Change programme which will report into the Integrated Joint Board for strategic direction and guidance. We will continue to work with our HSCP colleagues on a regular basis to ensure we are maximising opportunities for collaboration and joint working. For example, the HSCP are taking forward a service design approach on their programme “What matters to you?” and we are learning from the skills and knowledge they are using to work with people who have experience of health and social care services. Engagement with our communities 6.14 As has been previously mentioned, we have committed to continue working with our communities and partners through our Corporate Plan key priorities. Using a service design approach, which focuses on the involvement of people accessing and using services, will support us in understanding the challenges of consultation to co-production. The PMO will also provide support to project teams who need it in terms of engagement methods, facilitation skills and tools to collate data in a participatory way. 7. CONCLUSION 7.1 The Transformation & Change programme has made good progress in completing a number of project areas over Phase one including the senior leadership review and consolidation of support services within the Council. There are also a number of Phase two projects already underway, meeting key milestones and already realising benefits – highlighted within this report. The proposals for progress into phase two will strengthen our approach, allow for more consistency across workstreams with a newly formed programme management office and service design approach which will allow for clear support structures and reporting on progress to Board. 7.2 We will continue to keep Elected Members updated of overarching progress through formal Committee reporting structures. In addition, we are in the process of organising a series of informal workshop briefings over the next Page 96 of 132
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twelve months. We will use these sessions to give more details around specific project areas, achievements and challenges will be highlighted. Authors Name Designation Contact Details Charlene Guild Strategic Lead – Projects & Programmes ComCommitteereports@pkc.gov.uk Norman Ballantine Transformation & Change Manager ComCommitteereports@pkc.gov.uk Approved Name Designation Date Clare Mailer Depute Chief Executive 11 September 2024 APPENDICES: - Appendix 1 – Phase one benefits realised Appendix 2 – Phase two programme list Page 97 of 132
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Digital customer services • Getting information right first time by transferring Council Tax, Scottish Welfare Fund and Community Assistance Line calls to experienced staff. Providing an end-to-end service from the first point of contact. • KARL customer service system delivers a more personalised service to customers, improved forecasting and data-driven insights for improved customer service. • Standardised telephone line configuration to give a more unified approach for customers and reduce IT demand. • Managing out of hours demand so that overflow calls from Aberdeen can be redirected. An out of hours ‘storm’ message has also been tested and implemented. • Aligning staff hours to demand to meet customer demand at peak times with reduced resources. Public transport • Community groups have been supplied with multi-purpose vehicles for local transport. o Demand Responsive Transport Scheme trial between Blairgowrie and Dunkeld with Stagecoach East. o Glenfarg Community Transport Group growing with new routes and agreement to loan a 16-seater minibus to support them. • Passenger information initiatives such as QR codes and information videos to improve range of information and certainty for customers. • Free bus Saturday rolled out for 2024 as travel incentive. Strategic procurement and commissioning • Optimising existing procurement framework resulted in £79,000 rebate from Scottish Procurement Alliance. • Best value achieved by using Quick Quotes rather than existing framework for play area upgrades achieved £40,000 saving. Summary of benefits delivered Transformation and Change 7 Page 99 of 132
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Working smarter • Public sector hub delivering benefits of co-location and improved customer service experience. • Child and adult vaccination services from NHS Tayside moved in to Pullar House. • Unlocked opportunities such as a major strategic site becoming available for affordable housing. Collaboration • Tenant participation and community engagement teams merged to create a unified approach to collaborating with all community members on projects, co-design services and achieve better outcomes. • Community support and enforcement overlaps being reviewed with a view to consolidating activity currently delivered by several teams to enhance service levels, streamline provision and improve outcomes for residents. Whole family wellbeing • Whole Family Wellbeing Directory developed to raise awareness of services available to support families. • Microgrants delivered in partnership with PKAVS allowed 19 third sector and community groups to develop activities for family wellbeing delivered for over 450 children and young people, and over 200 parents/carers. • Universal Family Support Service delivered by Aberlour Childcare Trust to provide advice and signposting to around 50-100 people a week and direct support to up to 250 families a year. Starts 9 September 2024. Page 100 of 132
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Appendix 2 Transformation & Change Programme - Phase Two Projects Project Name Expected Outcomes Whole Family Wellbeing The project aims to support all families who need support to get the right kind of support where and when they need it, and for as long as it is needed. Community Engagement "To develop options to strengthen the efficiency and effectiveness of community engagement and empowerment across the Council. The Review outcomes are: 1.Services are more responsive, consistent and accountable. 2.Economic, social and health outcomes for communities are improved. 3.Community wealth and social capital is strengthened. 4.Savings and efficiencies are achieved from money, assets, skills and time. 5.Local democracy is re-energised. 6.Data and evidence drives more effective use of resources. 7.Staff are empowered, motivated and more agile. Multi-Disciplinary Locality Working 1.Build stronger relationships across the council, with partners and communities 2.Consider new ways to deliver services which are joined up, flexible and responsive to the needs of communities – based on feedback and supported by evidence 3.Collaborative approach with partners and communities to co-design services that meets needs – evidence-based approach 4.Initially taking a focussed approach tackle inequalities and poverty – expanding this approach across all priorities 5.Supporting our workforce to be empowered to make decisions and to take forward the no wrong door approach – cultural change programme. Public Transport Increased awareness and promotion of public transport within Perth and Kinross. A public transport model that reduces inequalities, air pollution and supports improvements to the health and well being of people in local communities through supporting an inclusive economy. Waste Management Scope currently being developed and working group / service design process in place. Artificial Intelligence (AI) Scope currently being developed in line with Business Systems project. 7 Page 101 of 132
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Project Name Expected Outcomes Business Systems 1.To create a detailed picture of how people / resources are allocated across the organisation supporting Council business systems and clarify total cost of ownership for business systems and associated capital / revenue budgets. 2.To create a Business Capability Model describing how Business systems collectively deliver on Council objectives 3.Introduce a new operating model for optimal delivery of modern digital business including: a revised Business Relationship and Business Partnership Agreements between services and IT; a defined model / approach for decommissioning / retiring Business systems 4.Improve records management compliance 5.To create a detailed picture of all contracts associated with all business systems capturing all key procurement and contract information, allowing for better contract management in the future. Additional Support Needs Transform ASN provision to deliver best value linked to best practice. Learning Estate Review Scope currently being developed Customer Services 1.To deliver a streamlined and consolidated customer- facing service on behalf of the Council, in line with its values and guiding principles in pursuit of outcomes within the LOIP and the new Corporate Plan. 2.To bring together the customer billing and collection functions and maximise the income available to our most vulnerable citizens. 3.To improve the accessibility of services to residents and service users and ensure consistency and equality of access. 4.To ensure customers experience a higher-quality service within permitted cost constraints. 5.To consistently achieve excellence and improve standards of service with most needs being fulfilled at first point of contact. Employability A model which delivers employability services that makes best use of our current skills, expertise, and resources to ensure a more coordinated and effective service. Page 102 of 132
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Project Name Expected Outcomes Finance Service Redesign A more strategically focussed finance service with investment in financial systems required to enable automation, improve efficiency and increase reporting abilities. Integration of finance across all council services to avoid duplication of effort and improve overarching financial management. Investing in our people to strengthen capacity in specific areas which will in turn strengthen internal support and provide challenge to budget managers. Phase 2 Leadership Development Programme The project has a number of different workstreams relating to the five leadership foundations: 1.Lead the delivery of the Council’s Vision and Corporate Priorities through evidence of high service performance and improvement 2.Leading and maintaining strong organisational culture and organisational behaviours 3.Lead the Council’s organisational transformation and associated programme of change and service redesign 4.Lead the Council’s commitment to meaningful and impactful engagement both inside and out with the Council 5.Lead the Council’s management of its people, resources, organisational risk and reputation An action plan is in place and expected outcomes are: 1.Considerable savings in relation to redesign and restructure of services for a more efficient and effective 2.Positive cultural change Manage and mitigate related risks in relation to leadership Invest in the development of leadership and aspiring managers to ensure the right skills at all levels Professional & Business Support To review existing arrangements and develop options to consolidate teams and increase the efficiency and effectiveness of the Professional and Business Support functions, with a more strategic approach to business administration and associated functions across the Council and prioritising available resources aligned to agreed priorities and need. The project will consider the options for consolidation and improvement of Professional and Business Support and Associated Functions currently in place across Perth and Kinross Council. Page 103 of 132
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Project Name Expected Outcomes Property Structure & Redesign The project aims to consolidate the strategy and delivery of property functions and accommodation across PKC. The annual cost of property was circa £55m in 22/23 plus associated staff costs of approximately £4m. in addition the general services capital plan and Council borrowing costs are dominated by historic and current property investment. The project will seek to clearly identify property accountabilities, deliver efficiencies in operation and seek to identify opportunities to rationalise the portfolio in the medium / long term reducing property revenue and capital costs. ALEOS Purpose to review our culture and leisure ALEOS and recommend structural/wider changes required to maximise PKC investment Tayside Contracts Review A scope is currently in development but expected outcomes and workstreams include: 1.Renegotiation of current service level agreements to ensure ongoing efficient, economical and innovative services are being delivered 2.Efficiency savings in particular areas – some of these have already been delivered 3.Improved cross regional working groups in specific areas 4.Improved internal management structure and service Corporate Landlord Model Scope currently being developed – Learning Estate Review will be a primary driver of this model. Working Smarter 1.Improving collaboration, at all levels, and between Council staff and our other stakeholders. 2.Embracing technology and new working styles to facilitate better productivity. 3.Enhancing employee experience and work/life balance through our more flexible operating model – we anticipate an additional benefit from this in the areas of staff recruitment and retention. 4.More effectively using our property estate, allowing more collaborative working and reducing our carbon footprint. 5.Establishing a model which will provide for the more effective, efficient and sustainable delivery of services to our communities. Strategic Procurement and Commissioning Re-design To design and implement a new operating model for strategic procurement and commissioning to improve efficiency and optimise the value and benefits of our purchasing power. Strategic Planning & Performance Service Redesign A more consistent and consolidated performance and approach which would enable increased oversight of all information and ensure our reporting is more efficient and timeous. Creating an 'organisational brain' which will allow our services to use data, research and information which allows them to place communities at heart of how we work by ensuring we are being more open, honest and transparent in our public reports as well as keeping our workforce informed about our position. Page 104 of 132
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PERTH AND KINROSS COUNCIL Finance and Resources Committee 18 September 2024 POLICY ON DISPOSAL OF MINIBUSES Report by Strategic Lead - Environment and Infrastructure (Report No. 24/263) 1. PURPOSE 1.1 The purpose of this report is to seek approval of Finance & Resources Committee to amend the Council’s policy on the disposal of Fleet and Mechanical Equipment with specific regard to minibuses which have reached the end of their operational life within Council service. 2. RECOMMENDATION 2.1 It is recommended that the Committee: • approves the Policy for Disposal of Minibuses as set out in Appendix 1. • approves the application process and assessment criteria for community groups applying to take ownership of an end of operational life minibus within Council service as set out in Appendix 2. • approves the use of up to £50k from the Anti Poverty Measures Fund in earmarked reserves to support any required repair work to minibuses for MOT purposes before transfer to community groups. 3. STRUCTURE OF REPORT 3.1 This report is structured over the following sections: • Section 4: Background • Section 5: Proposal • Section 6: Conclusion • Appendices 1, 2, 3, 4 and 5 4. BACKGROUND 4.1 It was reported to Finance and Resources Committee on 12 June 2024 that the disposal of minibuses currently falls under the existing general policy for the disposal of Fleet & Mechanical Equipment approved as an appendix to the Fleet & Mechanical Equipment Asset Management Plan agreed by Strategic Policy & Resources Committee in June 2015 (report 15/255 refers). The current policy was last reviewed in 2022 and was attached for information to the F&R Cttee report on 12 June. 8 Page 105 of 132
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4.2 It was agreed at Committee that the policy position of disposal at public auction be changed to allow minibuses which are deemed to be in suitable condition to be transferred to community groups. This innovative approach would remove a barrier to some groups, particularly those in rural areas, who may not otherwise have access to their own transport solution with positive links to help mitigate some of the issues around transport poverty and social connectivity etc. 4.3 There are 14 minibuses due to reach end of operational life within Council service this financial year as set out in Appendix 5, 3 of which have already been removed from service and currently retained at Friarton Depot pending the outcome of this report. 4.4 The determination of what constitutes ‘suitable condition’ referred to in 4.2 includes consideration of the following factors which are applied by our experienced workshop staff to every vehicle which has reached the end of its operational life within Council service; • Cost of parts and labour • Downtime • Age of vehicle • Condition of external body (corrosion/ defects) • Condition of internal devices (damage or defects to seats etc) • Condition of paintwork • Cost of repair versus market value of vehicle 4.5 It is known amongst Members that there are several community groups who could potentially be interested in receiving and operating an ex-PKC minibus. It was acknowledged therefore that some form of adjudication process would be required if more than one group expressed an interest in taking ownership of a minibus, further detail of which is set out in this report. 4.6 The draft minibus disposal policy was discussed at a Strategic Investment Advisory Group (SIAG) meeting held on 3 September 2024, input from which has been incorporated into the final version presented to Committee today. 5. PROPOSAL 5.1 That the proposed Minibus Disposal Policy as set out in Appendix 1 be approved as an amendment to the overarching Fleet & Mechanical Equipment Disposal Policy to enable the transfer of end of operational life minibuses within Council service in a suitable condition to community groups. 5.2 That the determination of what constitutes ‘suitable condition’ referred to in 4.4 above be considered alongside the SIAG recommendation that the Anti- Poverty Measures Fund from earmarked reserves be used to support repair costs for MOT purposes before transfer. It should be noted that all future ownership responsibilities including minibus repairs, maintenance and servicing costs etc are to be borne by the community group going forward with no recourse to the Council. Page 106 of 132
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5.3 It is proposed that a working repair budget principal of up to £5k per vehicle be applied with flexibility on a case by case basis as required. This decision would be made by Fleet Services within the overall funding resource approved by Committee. 5.4 An assessment /adjudication of the community benefit and need for a minibus by a community group is to be performed based on the criteria shown in Appendices 2, 3 and 4. This assessment and decision making to be carried out by PKC Community Services, supported by Fleet Services for the communication and management of the process. 5.5 A communications plan for community groups be set out describing the application process, assessment criteria and list of vehicles approaching end of operational life within Council service. 5.6 That the revised disposal policy be applied to minibuses only and that a trial period to test the new arrangement be put in place. It is proposed that the trial period should allow sufficient time to allow community groups to run minibuses to assess the reliability of vehicles and capture the wider impacts and outcomes of the initiative. It is proposed that feedback should be sought from community groups after 3 months and then again after 6 months from the date of transfer. 6. CONCLUSION 6.1 This is a well-intentioned initiative targeted at helping Community Groups. The demand for more forms of community transport has been increasing in recent years and these proposals have the potential to create increased public value; presenting PKC with an opportunity to work in partnership with communities to help develop more innovative local transport solutions and impact positively on transport poverty and social connectivity. Authors Name Designation Contact Details Fraser Crofts Strategic Lead – Environment & Infrastructure 01738 475000 EPLCommitteeReports@pkc.gov.uk Nigel Taylor Direct Services Manager – Economy, Place & Learning Pat Taggart Fleet Manager – Economy, Place & Learning Approved Name Designation Date Fraser Crofts Strategic Lead - Environment & Infrastructure 9 September 2024 Page 107 of 132
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APPENDICES Appendix 1 – Policy for the Disposal of Minibuses Appendix 2 – Community Minibus Information and Criteria Appendix 3 – Community Minibus Application Appendix 4 – Community Minibus Scoring Matrix Appendix 5 – Minibuses due to reach end of operational Council service 24/25 Page 108 of 132
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Corporate Plan Yes Resource Implications Financial Yes Workforce Yes Asset Management (land, property, IST) Yes Assessments Equality Impact Assessment No Strategic Environmental Assessment No Sustainability (community, economic, environmental) Yes Legal and Governance Yes Risk Yes Consultation Internal Yes External Yes Communication Communications Plan Yes 1. Strategic Implications Corporate Plan 1.1 This report supports the objectives within the new Corporate Plan: (i) Working in partnership with communities (ii) Tackling poverty (iii) Developing a resilient, stronger and greener local economy (iv) Tackling climate change and supporting sustainable places 2. Resource Implications Financial 2.1 The loss of auction sale income from this initiative was considered at F&R Committee on 12 June but it was agreed that this should be considered in the context of the wider community benefit from having access to transport at a local level with no upfront cost to community groups. It was considered at Committee that the potential level of reduction in income receipt is minimal in the context of the Council’s longer term vehicle replacement programme and the associated impact on loan charges would be contained in the Fleet revenue account. 2.2 Approval is sought for the use of up to £50k from the Anti Poverty Measures Fund in earmarked reserves to support any required repair work to minibuses for MOT purposes before transfer to community groups. Page 109 of 132
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2.3 Note that PKC will have no further involvement with or responsibility for any vehicle once it is transferred to a community group including future maintenance, repair or servicing costs. Workforce 2.4 There are no direct workforce implications arising from this report. Asset Management (land, property, IT) 2.5 There are direct vehicle asset management implications, as noted throughout the report. 3. Assessments Equality Impact Assessment 3.1 There are no Equality Impact Assessment issues arising other than the potential benefits to those community groups acquiring minibuses from PKC. Strategic Environmental Assessment 3.2 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. There are none arising from this proposal. Sustainability 3.3 The proposals in this report support the Council’s policy objectives with regard to sustainability. Legal and Governance 3.4 Governance arrangements for the transfer of end of operational life minibuses within Council service to community groups are set out in the body of the report and Appendices. Risk 3.5 There is the potential for reputational risk if the vehicles prove not to reliable and/or do not deliver on the expected outcomes from transferring minibuses to community groups. As stated in para 5.2 of the report, it should be noted that all future ownership responsibilities including minibus repairs, maintenance and servicing costs etc are to be borne by the community group going forward with no recourse to the Council. Page 110 of 132
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4. Consultation Internal 4.1 The proposals in this report have been discussed with officers from the various relevant Council Services including Finance, Legal and Procurement. Members on the Strategic Investment Advisory Group have also had the opportunity to make comment on the proposals. External 4.2 There has been contact between some community groups and Council Officers and Members. This has established that there is interest in end of use minibuses by community groups. 5. Communication 5.1 This would take place with all parties once the report has been considered/approved. Page 111 of 132
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APPENDIX 1 Perth and Kinross Council Policy for the Disposal of Minibuses September 2024 DATE VERSION APPROVED BY 1 December 2023 1 P Taggart (Fleet Manager) 21 February 2024 2 P Taggart (Fleet Manager) 10 September 2024 3 (After Siag Meeting) P Taggart (Fleet Manager) 1. Introduction In accordance with the Perth and Kinross Council (PKC) Fleet and Mechanical Equipment (FaME) asset management plan assets Policy 2022, it was decided that a separate disposal policy to incorporate the disposal of Minibuses should be created. This policy outlines how assets which fall within the Minibus category should now be disposed of. 2. Scope A minibus is defined as: ‘A small vehicle that is capable of carrying multiple people between 9 and 16 passengers at any one time and requires maintenance, calibration and/or a safety & inspection test at no more than 13 weekly intervals’. 3. Aims and objectives of this policy To ensure that any minibus owned by PKC which are declared surplus or end of operational life within Council service and in a suitable roadworthy condition as decided by Fleet Services (FS), can be further used by relevant Community Groups (CG) within the PKC boundary area. 8 Page 113 of 132
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4. Surplus Assets are identified as surplus in one of four ways: 1. As part of a replacement programme. An ongoing replacement programme is currently in place for all assets. 2. When they are unserviceable and beyond economical repair. Unserviceable fleet and mechanical equipment is deemed to be beyond economical repair by Fleet Management technical staff or categorised as a “write off” by the council’s insurers. This is when the decision is made by FS whether the vehicle should remain in active service by PKC staff or passed to a CG for further use. 3. When they are deemed not fit for purpose. A minibus can be declared not fit for purpose by FS technical staff, the budget holder, Corporate Health & Safety staff, relevant statutory bodies; Driver and Vehicle Standards Agency (DVSA), Department for Transport (DfT) or through a combination of listed parties. 4. When their function is surplus to requirements. Assets which are surplus to requirements are identified by individual services budget holders or with minibuses, when PKC has decided that these may benefit CG in the PKC area. Once identified as surplus or redundant the asset will be assessed against other Council and Service needs prior to disposal. Requirements also to be considered include: • re-allocation to another PKC service area if the previous user finds the minibus is surplus to requirements for that service. • spare Pool use Assets declared surplus should be communicated to all relevant parties as noted in this policy. If a decision is made for a minibus to be disposed of, this should be passed to a CG in accordance with the approved minibus disposal policy. If a CG is to be “gifted” the vehicle, the undernoted process must be strictly adhered to, and all associated ownership passed from PKC to that CG once agreed. 5. Disposal Disposal includes any activity associated with the disposal and decommissioning of an asset identified within the main FaME asset management plan. All assets that are not re-used have a sell on value and should be taken through the processes detailed in the FaME Disposal Procedure. This means the asset would be disposed of at auction. As with an uneconomic to repair minibus, this would be Page 114 of 132
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disposed of at auction and not allocated to any CG due to its poor and unroadworthy condition. The following factors must be considered prior to the disposal of any minibus belonging to PKC: 1. Notice in writing of interest and intention to acquire a minibus is provided by community groups to PKC Community Services – a process and communication and engagement plan to be introduced to cover this. 2. Inspection report on condition of the minibus is made available to any interested community groups aligned with PKC. 3. Visual inspection of the minibus is arranged by PKC Fleet Services (FS) for interested community groups to check on the condition of the asset prior to disposal/ transfer. 4. An assessment of the community benefit and need for the minibus by a community group to be performed by PKC Community Services based on the criteria shown in Appendices 2, 3 and 5. Fleet Services will coordinate and be present at all community group minibus inspections – the arrangements for this will be made by FS. 6. Test drives will be available to community groups who have been successful in their bids following adjudication by PKC Community Services. 7. The minibus must be in a roadworthy condition with a minimum of 6 months to one year MOT in place – FS will manage this. 8. All future repairs, maintenance, servicing and MOTs would be required to be arranged by the new owner / community group. PKC would not undertake future work. 9. A verbal update on the minibus service history will be provided by FS. A service history print from KEY 2 will also be provided on request. 10.The established principle of “sold as seen” would in this new arrangement become “transfer as seen” in line with other Fleet and Mechanical Equipment asset disposals. 11.PKC will have no liability for any minibus “transferred as seen” in line with its current arrangement when disposing of all other Fleet and Mechanical Equipment assets. 12.PKC would not accept the return of a transferred minibus under any circumstance and there would be no recourse nor liability to PKC once the transfer has taken place. Page 115 of 132
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13.If there is competition by community groups to acquire a minibus, there would be an adjudication by PKC Community Services based on consideration of the parameters described in Appendix 2 below. 14.There would be no warranty in place when the asset is transferred to the interested community group in line with the process when a vehicle is sent to auction. 15.PKC reserves the right to refuse to transfer of any minibus if its condition is poor and not regarded as being roadworthy or if the vehicle is required for “pool use”. 16.FS will agree with Legal and Finance Services on the specific assets within this category that will be disposed of in this way. 6. Finance Monies from the sale of assets are normally applied to offset the cost of new asset purchases. This reduces the amount of money required to be borrowed to finance the future purchase of assets. However, this specific disposal process aligned with minibuses means that there will be no funds for the handing over of the minibus as they will be “gifted” to relevant CG’s that have been approved by SIAG. 7. Governance The disposal of surplus and redundant assets will be managed in accordance with the Local Government in Scotland Act 2003 principle of securing Best Value. 8. Retention policies FaME disposal records must be retained on file for 7 years in line with Health and Safety instructions. The same will be in place for the minibus disposal policy. 9. Review Policy This Policy will be reviewed on an annual basis to ensure that it reflects the changing needs of Perth & Kinross Council and its employees. The review process, although led by the Capital Investment & Asset Management Team, will include a wider consultation with Fleet Management. Page 116 of 132
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APPENDIX 2 PKC have recognised that there are a number of community groups who could be interested in receiving and operating an ex-PKC minibus. There are 14 minibuses that are expected to reach the end of their operational life within Council service in 2024/25. We recognise that although these minibuses will no longer be used by PKC, community groups may be able to use these vehicles to enhance their service provision and provide community benefit. Community groups are invited to view the minibuses and can do so my contacting cld@pkc.gov.uk. Minibuses will all come with a 6 – 12 month MOT certificate and an inspection report on condition of the vehicle will be made available to any interested community groups. Otherwise, vehicles are ‘transferred as seen’. Test drives will be available for successful groups. All future repairs, maintenance, servicing and MOT etc would be required to be arranged by the transferee. PKC maintain no liability for the vehicle once ownership is transferred. A verbal service history update will be provided along with a service history print out if required. There is no application deadline. Applications are welcome at any time and will be considered when a vehicle is available. When a vehicle becomes available, a deadline for applications for that vehicle may be introduced. Application Criteria 1. Applications should be made on behalf of a constituted community group that is based in Perth and Kinross. Groups can be constituted but unincorporated, or have one of the following legal structures: • Scottish Charitable Incorporated Organisation • Community Investment Company • Community Benefit Society • Company Limited by Guarantee 2. Applications will not be accepted from: • Private/for profit businesses • Individuals 3. Groups must demonstrate what benefit having a minibus would provide to their community. Where possible this should link to PKC’s vision and priorities. 8 Page 117 of 132
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4. Applicants must demonstrate that they have a plan in place to manage ongoing costs of the vehicle, this may include applying for external funding or use of existing funds / income. 5. Groups should provide information on whether they have trained drivers, or how they will train drivers. MIDAS training will be required for all drivers and is available locally. 6. Groups will be asked to provide feedback after 3 months then 6 months from date of transfer on the use of the vehicle, any issues experienced and the benefits it has provided to the community. Page 118 of 132
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APPENDIX 3 PKC are offering to transfer ownership of minibuses which are no longer used by the Council. By doing this we seek to provide community benefits to groups across the Perth and Kinross area. Application criteria and deadlines can be found here. (Link) For assistance, please email cld@pkc.gov.uk or phone XXXXXXXX 1. Your Group 2. Type of Group Name of Group Location Which area does your group cover? (e.g. village, neighbourhood, Community Council area etc). What size of vehicle do you require? Registration of vehicle applying for (if known) Type of Group i.e. SCIO, Constituted Group, Company Limited by Guarantee, CIC Constitution Please attach a copy of your group’s constitution or articles of association to this application or provide a link to where they can be found online. Purpose of your group Please summarise the main purpose and aims of your group. 8 Page 119 of 132
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3. Your Minibus Needs 3.1 Please outline how the need for the minibus has been identified 3.2 Please outline how you would plan to use the minibus (number of passengers, expected purpose, mileage and frequency of trips) 3.3 Please detail the benefit that would be provided to the community by your group’s ownership of a minibus. 3.4 What other transport does your Group have available and how is it used? Has your Group previously received/ hired transport from PKC (please give details)? 4. Your Minibus Maintenance and Care 4.1 Do you have a space where you can park your minibus? Please give details below Page 120 of 132
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4.2 Please indicate how you might finance ongoing maintenance of the vehicle including MOTs, Servicing, unexpected repairs, and insurance? Having identified options may be useful but is not essential at this stage. 4.3 Minibus drivers require MIDAS training. Do you have anyone within your organisation that would already be qualified to drive the minibus? If yes, please detail below. Having pre- trained drivers may be useful but not essential at this stage. 5 Declaration To the best of my knowledge the information contained in this application is accurate. If a minibus is granted to my organisation as a result of this application, it will be used for the purposes outlined in this application. The information provided by you will be used by Perth and Kinross Council solely to contact you about your application. Contact details will not be disclosed to third parties. The Council may check information provided by you, or information about you provided by a third party, with other information held by us. We may also get information from certain third parties or share your information with them to verify its accuracy, prevent or detect crime, or protect public funds where required by law. Signature: Print Name: Position in Group: Date: If you are submitting your form electronically you can attach a picture image of your signature in the box below. Please send completed applications by email to cld@pkc.gov.uk or by post to: Page 121 of 132
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Community Learning and Development Team Perth & Kinross Counsil Council Building 2 High Street Perth PH1 5PH Page 122 of 132
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APPENDIX 4 The purpose of this scoring matrix is to support Officers to make a recommendation to award an ex-PKC minibus to a community group. The Scoring matrix is intended to be a guide only and is not a final decision-making tool. In order to give weighting to an application the following scores are applied: Very Strong 10 points Strong 8 points Moderate 5 points Weak 2 points Poor 0 points Each of the questions for scoring also include a section where Officers can note any particular points they wish to make, including any points of clarification or requests for additional information. 8 Page 123 of 132
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This scoring matrix is being completed in connection to the application from __________________________________________. Matrix Completed by _____________________________ (officer name) from _____________________________ (officer service) Question Score Comments Very Strong 10 Strong 8 Moderate 5 Weak 2 Poor 0 To what extent has the applicant demonstrated a clear need for the minibus? To what extent has the applicant demonstrated that they have access to the necessary funds to maintain the minibus? To what extend has the applicant demonstrated that they have trained drivers? To what extend has the group demonstrated that they have the resources to train future drivers? To what extent has the applicant identified a possible benefit to their community? Page 124 of 132
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Additional comments: In principle do you feel that the application should be: Approved: Reasons for approval Refused: Reason for refusal Page 125 of 132
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APPENDIX 5 Minibuses due to reach end of operational Council service 24/25 8 Page 127 of 132
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Perth and Kinross Council EMPLOYEES JOINT CONSULTATIVE COMMITTEE PART 1: CONSTITUTION AND FUNCTIONS 1. Title The Committee will be called “Perth & Kinross Council Employees Joint Consultative Committee for Local Government Employees”, subsequently referred to as the “JCC”. 2. Representation (a) The JCC will comprise: Perth and Kinross Council (i) Four members of the Council who will be appointed by the Finance & Resources Committee. (ii) Director (Economy, Place and Learning), Director (Strategy People and Resources) Chief Officer, Health and Social Care Partnership; Strategic Lead – Property Services. Other officers or their representatives may be requested by the Chairperson to attend any meeting where there are particular issues on the agenda about which they have specialist knowledge. Trade Unions Representatives of those trade unions recognised by the National Council on the following basis: (i) 12 Members of trade unions (3 of these will be members of teaching trade unions) UNISON – Unite the Union - GMB – EIS – SSTA - NASUWT (ii) Members of teachers trade unions are present for Health and Safety issues only (iii) Two non-union representatives shall be appointed to the Committee for Health and Safety issues only Provision will be made for any other union to be represented when a subject concerning their members is to be discussed. Report No. 24/264 9 Page 129 of 132
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(b) If a member of the JCC ceases to be a member or officer of the Council or of the trade union which he/she represents, then their membership of the JCC will cease. (c) If a member or lead officer is unable to attend a meeting, a substitute will attend in their place. (d) Any such vacancy which arises on the JCC, for whatever reason, will be filled by a member or officer of the Council or trade union as appropriate. (e) The Joint Secretaries of the Joint Negotiating Committee for Teaching Staff may also be invited to attend, or be represented, in the capacity of observers. 3. Chairperson A Chairperson and a Vice-Chairperson must be appointed by the JCC at its first meeting every two years. An officer of the Council cannot be appointed as Chairperson or Vice-Chairperson. The Chairperson appointed should be a Trade Union representative and the Vice-Chairperson should be a member of the Council. 4. Officers (a) The JCC will appoint Joint Secretaries, one to be nominated from each side, and any other officers as required. (b) The Corporate Human Resources Manager and Health and Safety Team Leader (both Strategy, People and Resources) will act as Advisers to the JCC. 5. Functions The functions of the JCC will be to: (a) Establish regular consultation and negotiation between the Council and its employees, to prevent differences and to address these if and when they arise. Issues of individual discipline, grievance, grading, promotion and terms and conditions will not be included within the scope of the JCC. (b) Consider any relevant matter referred to it by the Finance and Resources Committee or by the unions. In this respect, each party will have the right to invite any officer or member of the Scottish Joint Council or any person(s) to attend a JCC meeting but only to act in an advisory capacity. Page 130 of 132
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(c) Consider and make recommendations to the Finance and Resources Committee where appropriate concerning any issues of common interest. Such areas to include: welfare of staff; local conditions of service; education and training, health and safety, wellbeing, corporate property compliance and housing compliance. The above being subject to the provision that matters relating to individual employees are neither discussed nor referred to the other Committees. (d) Health and safety quarterly reports will include an overview of any external health and safety reports on incidents dealt with at service level. (e) Consider and make proposals regarding the best methods to be employed in improving the organisation and cost-effective delivery of Council Services. (f) The review of accident and ill health incidents, statistics and trends so reports can be made to management. The consideration of reports provided by the Strategic Lead – Strategy, People and Resources and the Council’s Health and Safety Advisor. (g) The examination of performance review reports where issues cannot be resolved at the Service Health and Safety Committees. (h) To review the Council Occupational Health and Safety policy, topic specific Management Arrangements and Guidance while raising awareness of health and safety communications, promotion and employee participation, through participating in joint employee- employer health, safety and wellbeing initiatives. (i) Refer any matters which the JCC considers to be more than of local importance to the Scottish Joint Council and inform the Scottish Joint Council of any recommendations in this respect. PART 2: RULES AND REGULATIONS 1. Meetings The Committee shall meet quarterly. A timetable of meetings will be published annually for the forthcoming year. A meeting may be cancelled if there is no business to transact. Additional meetings of the JCC may be called by the Chairperson or Vice-Chairperson at any time. Any member unable to attend a meeting may send a substitute to attend. Page 131 of 132
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2. Quorum The quorum of the JCC will be four provided that the members of the Council and the trade unions are represented. 3. Agenda The agenda or issues to be discussed at any meeting of the JCC must be itemised and stated within the notice of calling the meeting. Democratic Services must receive items for inclusion on the agenda at least 10 days before the meeting. An agenda and papers will be issued to all members at least 7 days prior to the meeting. Items received by the given deadline or considered a matter of urgency will be included on the agenda at the discretion of the Chairperson in conjunction with the Vice-Chairperson, with reference to the function and objectives of the Committee. 4. Minutes The minutes of the JCC will be agreed between the lead officers and will be circulated to all members of the JCC for approval with the papers for the next meeting. Thereafter the minutes will be circulated to the next available meeting of the Finance and Resources Committee. 5. Facilities and Services Democratic Services will provide administrative support to the JCC. The Council will afford the necessary facilities for the representatives of the trade unions to attend meetings of the JCC. 6. Other Matters For the purpose of determining order of debate and other questions not provided for within this Constitution, the Standing Orders of the Council will apply, with necessary modifications at all JCC meetings. This Constitution may be varied or modified by agreement between the relevant parties. The JCC shall have no executive powers and shall act as a consultative and advisory body only. The Council shall not be bound to approve or act upon JCC recommendations. The JCC shall not make recommendations which conflict with the policy or recommendations of the appropriate Scottish Joint Council. Page 132 of 132