Item 9 - Appendix 2
West Dunbartonshire Council · 22 May 2024
Back to Infrastructure, Regeneration & Economic Development Committee — 22 May 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
Appendix 2: Resources Delivery Plan 2023/24 – Asset Management 1. Introduction Resources comprises Finance, Business Support, Internal Audit & Fraud and Asset Management. It provides accountancy, treasury management, business support, internal audit and fraud and asset management services to the Council and external clients including the West Dunbartonshire Leisure Trust, the Valuation Joint Board, Clydebank Property Company, charities and trusts, and West Dunbartonshire Energy Ltd. Company. In addition, it provides direct services to residents of West Dunbartonshire. It is one of seven strategic areas responsible for delivering the Council’s Strategic Plan. Key actions to help achieve that are set out in this Delivery Plan, together with actions to address any performance issues and service priorities identified in the planning process. Progress will be monitored and managed by the management team and reported to Corporate Services Committee and Infrastructure, Regeneration & Economic Development Committee (asset management elements only) twice yearly, at mid-year and year-end. 2. Performance Review The Resources management team completed a detailed review of 2023/24 performance, focusing on: • 2023/24 Delivery Plan year-end progress • Local Government Benchmarking Framework (LGBF) comparative data • Citizens’ Panel feedback • Telephone Survey feedback • Complaints • Continuous improvement This review highlighted our key achievements and challenges in 2023/24. These are summarised below. ITEM 9 - APPENDIX 2
Page 2
Key Achievements in 2023/24 Asset Management • Supported the delivery of major capital projects including Faifley Community Campus, new build housing projects, development phase of Exxon City Deal Project and other general services projects. • Further developed office accommodation plans and managed access and occupancy rates. • Continued to deliver the Disposal Strategy outcomes and delivered income via capital receipts. • Developed and implemented a new Council Asset Management Framework and Property Asset Plan. • Progressed the programme of the Council Assets capital funded improvement projects. Key Challenges in 2023/24 Asset Management • Staff turnover coupled with the time taken to replace, recruit and train employees continued to be a challenge in 2023/24. • High sickness absence reduced available resource resulting in increased expenditure for sub contracted works and agency costs. • The national skills shortage of qualified and experienced officers in Corporate Asset Management resulted in reduced workforce numbers and increased demands on existing teams. This resulted in alternative service delivery models being introduced. • Increasing issues relating to the supply of labour and materials, due to increased energy, transport and raw material costs, impacted supply chains and third parties and our ability to carry out works within budget and on time. 3. Strategic Assessment The Resources management team completed a strategic assessment to determine the major influences on service delivery and priorities in 2024/25. The key factors are summarised below.
Page 3
Key Factors Financial Challenges The entire public sector is continuing to face significant financial challenges due to a range of factors including inflationary cost increases, pay awards not being fully funded by the Scottish Government and insufficient overall funding to support the delivery of front line and back office services. The Council are currently faced with an estimated cumulative funding gap in 2025/26 of £9.8m rising to £40.4m by 2028/29. We will continue to monitor the overall financial position of the Council and updates on estimated future budget gaps will be reported to Elected Members throughout 2024/25. These challenges require further action to balance our budget and protect services for residents. Within Resources, this means that available funding will be reduced over time and we will need to reconfigure how we work, what we do, where we work, and potentially reduce the number of people employed. In this context, we will aim to continue to provide a sustainable, quality service to internal clients and the public. Budget Sensitivity Analysis In reviewing the service budget projections, consideration has been given to sensitivity of these budgets, in particular for higher risk/ higher value budgets which may have a significant impact on budgetary control and future budget projections. The analysis has considered sensitivity around demand, costs and charges, and income levels. Within Resources, budgets which have been identified as being more susceptible to fluctuations include: • Building Materials • Labour costs • Transport fuel costs • Capital Plan On a more Council-wide basis, the Council’s cost of borrowing is susceptible to fluctuations in the bank interest rate due to the level of the Council’s short-term borrowing.
Page 4
Income from Capital Receipts Continuing to secure income for the Council is a key priority and the Corporate Asset Management Framework supports this through the delivery of capital receipts from the disposal of key strategic sites. The Framework will highlight non-performing property assets, inform the process for considering future disposals, and generate additional income through the disposal of redundant assets. In 2024/25, we will monitor the progress against the Framework and the disposal of key strategic sites and provide an annual update on progress. Glencairn House Redevelopment The Levelling Up Fund is a UK government initiative for regenerating town centres and high streets, upgrading local transport, and investing in cultural and heritage assets. Following a successful bid to the Fund, work is underway to progress the redevelopment of Glencairn House in Dumbarton town centre as a combined museum, library and community facility. Planning permission has been approved and a contractor appointed. In 2024/25, we will progress the redevelopment in line with the agreed plan with progress reported to the Levelling Up Project Board. Building Upgrades The 2024/25 programme for delivering Corporate Assets building upgrades includes renovation, remodelling and refreshing corporate buildings in accordance with the Corporate Asset Management Plan. In 2024/25, we will progress the buildings upgrades programme in line with the agreed Plan and timeframe. Depot Refurbishment The Council’s depot estate is no longer fit-for-purpose. Following a review of the complete estate and the preparation of a feasibility report, it has been agreed to refurbish the estate rather than progress with a new build due to cost restrictions. In 2024/25, the Depots Project Board will take forward the depot refurbishment programme.
Page 5
Asset Related Council Savings Options In line with the Council’s agreed savings options for 2024/25, there are a number of initiatives that include changes to Council assets that will require support from the Asset Management team. In the coming year, we will work in partnership with the relevant services to develop and implement plans and provide support to deliver the asset related savings agreed by Council. Continuous Improvement Continuous improvement is central to all that we do. The actions set out in this section, as well as those at an operational level not included in this Delivery Plan, demonstrate our commitment to continuous improvement and take account of the wider Best Value focus on vision and leadership; governance and accountability; effective use of resources; partnerships and collaborative working; working with communities; sustainability; and fairness and equality. Action Plan The challenges identified in Section 2 and the key factors identified in Section 3 have informed Resources priorities for 2024/25. Appendix 1 sets out the action plan to address them. It also includes: • performance indicators and targets that will enable progress to be monitored and reported to stakeholders • strategic workforce actions to address workforce issues identified in the planning process • strategic and/or service risks. In relation to the latter, strategic risks represent the potential for the Council to take advantage of opportunities or fail to meet stated strategic objectives and those that require strategic leadership. Service risks relate to service delivery and represent the potential for impact on individual services, or the experience of those who work within the services, i.e. employees, partners, contractors and volunteers or service users and clients in receipt of the services provided. In identifying the relevant risks for 2024/25 and actions to mitigate them, the aim is to improve or maintain the current position (i.e. the current risk score) set out in the appendix.
Page 6
4. Resources Finance (Not yet available) Resources has a net revenue budget of £x.xxxm and a capital budget of £x.xxxm in 2024/25. A breakdown by service area is set out below. We will make the best use of the resources available to deliver on key priority areas and secure external/match funding where this is possible. Service Area (Figures subject to ongoing verification) Gross Expenditure 2024/25 (£m) Gross Income 2024/25 (£m) Net Expenditure 2024/25 (£m) Capital Budget 2024/25 (£m) Finance x.xxx x.xxx x.xxx x.xxx Audit & Fraud x.xxx x.xxx x.xxx x.xxx Business Support x.xxx x.xxx x.xxx x.xxx Asset Management x.xxx x.xxx x.xxx x.xxx Total x.xxx x.xxx x.xxx x.xxx Employees Employee Numbers The headcount and full time equivalent staff in each service area (as of 31st March 2024) are as follows: Function Headcount FTE Audit & Fraud 8 6.10 Business Support 74 66.32 Finance 35 32.61 Asset Management 50 46.93 Estate Management 3 3.00 TOTAL 170 154.96
Page 7
Absence The 2023/24 quarterly absence figures for Resources are shown below, together with the Council average for the same periods for comparison. The figures for Resources have been significantly lower than the Council average throughout 2023/24: Absence in 2023/24 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Annual FTE days lost per FTE employee Resources 0.8 1.73 2.46 1.98 5.92 COUNCIL WIDE TOTAL 3.64 3.36 4.67 5.01 13.74 Appendix 1: Action Plan Please Note: PI targets for 2024/25 are indicative until 2023/24 year-end data becomes available. Our Communities Our residents are supported to increase life and learning skills Action Due Date Owner Progress the redevelopment of Glencairn House 31-Mar-2025 Michelle Lynn
Page 8
Our Environment Our neighbourhoods are sustainable and attractive Action Due Date Owner Progress the building upgrades programme 31-Mar-2025 Michelle Lynn Our Council Our Council is adaptable and focused on delivering best value for our residents Performance Indicator 2024/25 Owner Target Percentage of council buildings in which all public areas are suitable for and accessible to disabled people 97% Michelle Lynn Percentage of capital receipts achieved as forecast 90% Michelle Lynn Proportion of operational buildings that are suitable for their current use 93% Michelle Lynn Proportion of internal floor area of operational buildings in satisfactory condition 91% Michelle Lynn Action Due Date Owner Progress the disposal of key strategic sites 31-Mar-2025 Michelle Lynn Progress the depot refurbishment programme 31-Mar-2025 Michelle Lynn
Page 9
Action Due Date Owner Develop and implement plans and support services to achieve the asset related options agreed by Council 31-Mar-2025 Michelle Lynn Risk Description Current Assessment Target Assessment Owner Maintaining Council Assets that are fit for purpose The risk that the Council's assets and facilities are not fully fit for purpose with consequent adverse impact on our ability to deliver efficient and effective services. Assets included in this assessment are; the Council’s property portfolio. Michelle Lynn