Rochdale BC Budget Report 2017/18

Transcription

1 Rochdale BC Budget Report 2017/18 Including : Provisional Revenue Budget 2017/ /20 Provisional Capital Programme 2017/ /20 Council Tax 2017/18 Pay Policy Treasury Management Strategy Medium Term Financial Strategy 1

2 Contents 1 Introduction 1 2 Part 1 : What we need to spend and how this will be funded General Fund Revenue Account Local Government Finance Settlement Locally Generated Sources of Income Central Government General Grants and Regional and Local Pressures Budget Gap Education Services Grant and Schools Funding 2018/ /20 Provisional Estimates Medium Term financial Strategy Capital Programme Part 2 : Council tax, business rates and the accounting arrangements for this contained in the Collection Fund Collection Fund 2017/18 Recommended Council Tax Business Rates Appendices Appendix 1 : General Fund Summary Estimates 2017/ /20 Appendix 2 : Budget Assumptions 2017/ /20 Appendix 3 : Savings Proposals summary Appendix 4 : Capital Programme 2017/ /20 Appendix 5 : Statement of Directorate Revenue Requirements Appendix 6 : Pay Policy Statement Appendix 7 : Treasury Management Strategy Appendix 8 : Medium Term Financial Strategy

3 1. Introduction 1.1 This report contains : the revenue budget 2017/ /20 capital programme 2017/8 2019/20 Pay Policy Treasury Management Strategy Medium Term Financial Strategy 2017/ /22 which are being recommended to Budget Council for approval by Cabinet This report is presented in two parts, as there is a requirement for all billing authorities to keep a separate Collection Fund Account to the main General Fund Budget. Part 1 deals with the budget requirements of Rochdale BC whilst Part 2 concentrates on Collection Fund issues. 2. What we need to spend and how this will be funded 2.1 Part 1 District Requirements - The General Fund Revenue Account The proposed budgets for 2017/18 to 2019/20 are set out at summary level at Appendix 1. The net funding requirement for 2017/18 is m, as set out in table 1 below: Table 1: Net Funding Requirement 2017/18 '000 Council Tax 76,840 Business Rates Retained 52,200 Revenue Support Grant 0 Business Rates Top-up Grant 49,401 General Grants 12,556 Collection Fund Surplus 4,359 Collection Fund Adjustment 675 Net Funding Requirement 196, The assumptions on which Directorate budgets are based are set out in Appendix 2 (the outcome of consultation on these with Corporate Overview and Scrutiny, Townships and the JCC is that the assumptions were considered) The budget considers the latest projected outturn for 2016/17, which is currently forecasting an overall in year saving of 1.138m ( 1.343m subject to approval of Budget Pressure Funding). The Council s general 1

4 balances will be 12m at 31st March 2017 and will support the risks within the proposed budget. Any final in year saving at the end of 2016/17 will be allocated to the Equalisation Reserve which has been established to fund the implementation of complex savings proposals and to smooth the impact of the funding gap Further information on budget risks is provided in a separate report to Budget Council. Members should consider the views of the Chief Finance Officer set out within the report with regard to the robustness of the budget and the adequacy of balances and reserves when determining the budget requirement The calculation of Council Tax (for District purposes) for Band D properties based on the expenditure level at provisional settlement was m as shown in Table 2. Table 2: Proposed Budget and Council Tax for District Purposes as at Provisional Local Government Settlement 2016/ /18 Budget Proposed Variation Budget '000 '000 '000 % 1 BUDGET REQUIREMENT 180, ,857-1, % 2 Revenue Support Grant 39,273 29,812-9, % 3 Business Rates Top-up Grant 25,803 30,135 4, % 4 General Grants 9,312 9, % 5 Business Rates Retained 30,918 27,673-3, % 7 Net Requirements 74,851 81,874 7, % 8 Adjustment re balance on Collection Fund as at -2,921-4,359 31st March 9 Collection Fund adjustment Amount to be precepted on the Collection Fund 71,930 76,840 4, % 11 Council Tax for District Purposes 1, , % 12 Tax Base 2017/18-53,025 Tax Base 2016/17-52, Local Government Finance Settlement The Provisional Local Government Finance Settlement for 2017/18 was announced in Parliament 15 th December The provisional settlement confirmed the funding and spending power for Local Authorities. The Final Local Government Finance Settlement for 2017/18 2

5 was announced on the 22 nd February There have been no changes to the overall resources from that provided at Provisional Finance Settlement The proposals set out in the Provisional Settlement result in a net increase in resources of 1.731m available to the Council in 2017/18 compared to the budget assumptions at that time. The majority of the additional resources relate to a one off grant of 1.1m for Adult Social Care. Table 3 summarises the impact of the provisional and final settlement The Provisional Settlement set out the regional authorities who from 2017/18, would become the pilot regions responsible for 100% of business rates retention. This included a pilot for Greater Manchester. The figures contained in this report have been updated to reflect the pilot. There has been no impact on the financial position as the Government has made a no detriment commitment to those included in the pilots. However the resources indicate a change of m from the assumed budget to final settlement as illustrated at Table 3 and 3a. The main change relates to the removal of the public health grant from services budget which is now replaced with the additional business rates retained as part of the pilot. Table 3: Impact of Provisional and Final Settlement 2017/18 Current Assumed Budget 2017/18 Provisional Settlement 2017/18 Final Settlement 2017/18 Difference between Assumed Budget and Final Settlement Reasons for Difference m m m m See Locally Generated Funding Business Rates Council Tax Government Grants Revenue Support Grant Business Rates Top-up Grant New Homes Bonus Adult Social Care Support Grant Improved Better Care Fund Section 31 Grants Education Services Grant Total

6 Table 3a Difference between Current Budget Assumptions and Final Settlement 2017/18 Difference m Public Health Grant funded from Business Rates Retained New Homes Bonus - net impact of revised formula Adult Social Care Support Grant Council Tax increase Education Services Grant reduction Table 3b: Proposed Budget and Council Tax for District Purposes following Final Settlement announcement 2016/ /18 Budget Proposed Variation Budget '000 '000 '000 % 1 BUDGET REQUIREMENT 180, ,031 15, % 2 Revenue Support Grant 39, , % 3 Business Rates Top-up Grant 25,803 49,401 23, % 4 General Grants 9,312 12,556 3, % 5 Business Rates Retained 30,918 52,200 21, % 7 Net Requirements 74,851 81,874 7, % 8 Adjustment re balance on Collection Fund as at -2,921-4,359 31st March 9 Collection Fund Adjustment Amount to be precepted on the Collection Fund 71,930 76,840 4, % 11 Council Tax for District Purposes 1, , % 12 Tax Base 2017/18-53,025 Tax Base 2016/17-52,144 4

7 2.3 Locally Generated Sources of Income Business Rates and Top-up Grant Business Rates The Council in 2016/17 retained 49% of the business rates income collected from local businesses, with 50% being paid to Central Government and 1% to GM Fire & Rescue Authority. Our Business Rates tax base is projected to be m for 2017/18, representing the value of Business Rates income we estimate will be collected from businesses. Each business rate tax payer account has a rateable valuation provided by the Valuation Office which is multiplied by a business rates multiplier, this increases each year and is currently set by the Government in the Autumn Statement. The Council s share of Business Rates income, equates to m in 2017/18 after applying business rates discounts such as charitable relief, empty property relief and small business rates relief. Revaluation 2017 The revaluation of business rates will take affect from 1 April The revaluation is a revenue neutral exercise, therefore the total business rates bill will stay the same at a National level, after allowing for appeals. At the local authority level, overall bills will increase or fall depending upon revised rateable values. The overall rateable value for Rochdale Council is expected to reduce by 1.4% from the current RV list. 100% Business Rates Retention Pilot 2017/18 The Local Government Finance Settlement 2017/18 included the introduction of the 100% retention of Business Rates for identified regional pilot authorities, including Greater Manchester. The pilot authorities will each retain 100% of locally-raised business rates. In return Greater Manchester Authorities will forgo Revenue Support Grant (RSG) and the Public Health Grant. Authorities tariffs and top-ups will be adjusted to ensure these changes are cost neutral. The pilots will also test a number of potential elements of the 100% business rates retention scheme, including revised safety net arrangements. The pilots will be without detriment to the resources that would have been available to individual authorities under the current local government finance regime (with any detriment payments funded from outside the Settlement). The figures contained in this report at this stage reflect the move to 100% business rates following confirmation of the pilot for 2017/18 in the Final Local Government Finance Settlement. In order to account for the Council retaining 99% of the business rates it collects the following assumptions will be required: RSG and Public Health Grant will be removed as sources of funding 5

8 Any business rates losses resulting from the reduction in rateable value will be offset by increased business rates top up grant All other business rate relief grants will remain The underlying assumption of the move to 100% business rates is that it will be fiscally neutral. The impact of these changes in terms of loss of grants compared to retaining all business rates is illustrated at Table 3c; Table 3c: Change in resources as part of the 100% Business Rates retention pilot from 2017/18 Business Rates Top Up Grant 2017/ /18 Funding Funding Based Based on 2013 on the New System System m m Revenue Support Grant Public Health Grant Business Rates Income Business Rates Top-up Section 31 Grants Total Some local authorities collect and retain a lot more business rates than others, so the business rates retention scheme includes a system of topups and tariffs. Whether a local authority is a tariff or a top-up authority is determined by comparing the amount of funding required by an authority via the business rates retention system (its baseline funding level) and the amount it can raise in business rates locally (its business rate baseline). If an authority s business rates baseline is less than its baseline funding level, it receives a top-up grant from the government. If an authority s business rates baseline is greater than its baseline funding level it pays a tariff to the government. The tariff and top-up amounts were set in 2013/14 and in previous years have been increased in line with the business rates multiplier. However, in 2017/18 the tariff and top-up amounts have been adjusted to take account of the business rates revaluation For those authorities in the 100% Retention Pilot these have been adjusted further. 6

9 The revised system for top ups will be fixed in autumn 2017 once the revaluation has had an opportunity to bed in. However, there is a risk for local authorities that the top up will not adequately compensate for appeals after this date, nor will it reimburse local authorities where large increases in rateable values are offset by reliefs such as in the case of Academy schools Council Tax A Council Tax referendum limit of below 2.0% will be maintained for lower tier councils (those which do not provide Children s & Adult Care Services). As in 2016/17 councils with responsibility for Adult Social Care will have the flexibility to charge a precept on their Council Tax to fund Adult Social Care Services. The increase in the Council Tax base has generated 1.257m of additional income and was adjusted in the budget assumptions before notification of the provisional settlement. The increase in Council Tax base has arisen from a review for 2017/18, the assumed level taking into account: Increase in the property numbers; Changes to take-up of the Local Council Tax support scheme and other discounts. Adult Social Care Precept The settlement offers the flexibility to charge an Adult Social Care Precept of up to an additional 3% on council tax for the next 2 years however no charge can be made in 2019/20, to maintain the 6% precept across the 3 years. The current budget assumes a 3% increase in the first two years and no further increase in 2019/20. The 3% Adult Social Care Precept in 2017/18 and 2018/19 will generate additional resources of 0.732m in 2017/18 and a further 1.506m in 2018/19. The Local Government Finance Report and council tax referendum principles for will require Chief Finance Officers to provide information demonstrating that an amount equivalent to the additional council tax has been allocated to adult social care. This must be done within 7 days of their authority setting its budget and council tax for In subsequent years Chief Finance Officers will be required to confirm that this additional council tax continues to be allocated to adult social care. The adult social care precept will be utilised to support Adult Care costs and forms part of the requirement to support social care to deliver at the current level of activity in a climate of rising costs. There is a commitment that this funding will be used to facilitate the GM priorities for Health and Social Care through the Locality Plan. 7

10 2.4 Central Government General Grants and Regional and Local Pressures In 2017/18 the Council is estimated to receive 1.299m more in government funding following the Final Settlement than currently assumed in the budget the majority relates to 1.113m from the Adult Social Care Support grant Revenue Support Grant (RSG) The final settlement confirmed the RSG amounts announced in the 2016/17 Final Settlement under the Government s multi-year funding offer. The figures were already assumed in the budget, but represent a continued significant reduction in RSG funding for the Council. Table 4 shows the RSG for 2017/18 to 2019/20. Table 4: Revenue Support Grant By 2019/20 the multi-year settlement indicates that RSG will reduce by m, a 56.85% overall reduction from the level of grant received in 2016/17. Rochdale Council is part of the pilot to retain 100% of business rates from 2017/18. Although the Council is eligible for RSG, a grant allocation will not be payable in lieu of the retention of the additional business rates retained. This budget report assumes that this will continue until 2020/21 when all Councils are expected to move to 100% business rates retention New Homes Bonus (NHB) RSG Decrease m m % 2016/ / % 2018/ % 2019/ % The Government consulted on the New Homes Bonus scheme in September 2016 and the outcome of this consultation was announced in the Provisional Settlement. The overall impact of the changes to the NHB scheme is a reduction in the 2017/18 grant of 1.041m and a 1.526m in 2018/19. The number of years that the NHB is being paid for will be reduced from the current 6 years to 5 years in 2017/18 and to 4 years from 2018/19. In addition the NHB calculation of the 2017/18 NHB has been amended to introduce a baseline for housing growth, set for 2017/18 as 0.4% of the previous year s dwelling stock (total stock less long-term empty properties). Housing growth below this level in each authority will not receive NHB allocations. 8

11 The Government also outlined the possibility of not paying NHB where authorities have granted planning permission on appeal. The details of this measure will be consulted on during 2017/18. Savings from the NHB at a national level will be used to fund the new Adult Social Care Support Grant in 2017/18 only Adult Social Care Support Grant The Adult Social Care Support Grant is a new funding stream which provides 241m nationally in 2017/18 as one off funding, and is being funded from changes to the New Homes Bonus and does not represent additional funding to local authorities. There will be gainers and losers at an individual local authority level. Rochdale gains 63k in 2017/18, as shown in Table 5. However as the new grant is for one year only the local authority will have a real reduction in funding of 1.220m in 2018/19 from the continued loss of NHB grant. However, this loss of grant will in part fund the Improved Better Care Fund (see paragraph 2.4.4). Table 5: Adult Social Care Grant compared to reduction in New Homes Bonus m Adult Social Care Grant Reduction in NHB Scheme Net increase in funding This new grant is to be allocated to Local Authorities based on the social care relative needs formula, so that all authorities with responsibility for social care receive a share of this funding. Rochdale s allocation for 2017/18 is 1.113m and this allocation does not take into account the flexibility around precept increases i.e. in relation to those who can raise more through the precept at 2% or 3% Improved Better Care Fund The allocations announced earlier this year have been confirmed. Rochdale s allocation is 0.969m in 2017/18, 5.361m in 2018/19 and 9.240m in 2019/20. The allocation methodology uses the 2013/14 social care relative needs formula and allocates funding by taking into consideration the amount that can be raised by a local authority from the social care precept. The calculation of the Improved Better Care Fund assumes that councils will increase council tax for the 2% social care precept. Note that Better Care Funding provided by the Government is not increased if an authority does not choose to increase its Council Tax by the adult social care precept. 9

12 2.4.5 Multi-year Settlements This is the second year of the four year funding settlement offered by Central Government. Central Government made a commitment to provide central funding allocations for each year of the Spending Review period, should councils choose to accept the offer and if they have published an efficiency plan. The Council accepted the Four-Year Settlement and the indicative figures provided in the 2016/17 settlement have been confirmed in the 2017/18 final settlement. 373 out of 383 authorities accepted the four- year offer. For those authorities who have not accepted the offer Central Government has only confirmed funding allocations for The funding allocations for these authorities in and will be revisited in due course as part of the annual settlement process covering these years and Central Government cannot guarantee that funding allocations for these authorities in these years will not be reduced or distributed on a different basis GM Waste Disposal and Passenger Transport levies GM Waste Disposal Levy The waste disposal levy is calculated by a formula across Greater Manchester which takes account of recycling levels. If Rochdale Borough did not increase recycling at the same level as other GM Authorities there would be an impact on the waste disposal levy charged to our Council thus leading to an increased cost to our Council s budget. The Waste Disposal Levy assumed for in the MTFS is based on the latest projections provided by GM Waste Disposal Authority (GMWDA). GM Passenger Transport Levy The Passenger Transport Levy (PTL) was subject to consideration/agreement as a consequence of the Passenger Transport Authority s budget setting process in 2017/18 and subsequent years. Further Considerations The GM Waste Disposal Authority (GMWDA) is seeking to mitigate the impact of a forecast large levy increase in 2017/18 by bring forward a savings programme which will see costs of disposing of the waste we generate reduced. Detailed plans are in an advanced stage, but to ensure that savings for future years are maximised an initial upfront investment of upto 77.7m may be needed in day to day (revenue) spend, as well as some longer term (capital) investment. The impact of the extra revenue spending requirement means that a headline average increase of 5.3% is being increased to an average 53.5%. The original intention was to eliminate that increase at district level by switching resources within the GM Combined Authority, as the intention was to incorporate the GMWDA into GMCA from April That has now been delayed by 12 months. Working closely with GMCA it is however proposed to reduce the GMCA Transport levy by an equal cash amount for each district, thus delivering on the no local impact plan. Unfortunately that means that the 53.5% waste levy increase is shown alongside a 46.8% reduction in the Transport Levy. Those 10

13 resources will then be switched back from GMWDA savings to GMCA Transport levy from 2018/19 to 2020/ Superannuation Rates The Pension Fund Contribution Rates payable to the Greater Manchester Pension Fund (GMPF) had been assumed in the budget for budget planning purposes to increase by 0.4% over the three years 2017/18 to 2019/20 i.e. 20.1%, 20.5% and 20.9% respectively. Further information provided by the GMPF has revised these rates to 20.9% over the three years. Detailed work has been undertaken with GMPF and the proposal is to amend the contribution rates to 20.5% over the three years 2017/18 to 2019/20 and to reduce the level of the pension provision for early retirement and redundancy by the GMPF to reflect our current forecast level of non-ill health early retirement and redundancy costs. There will be no net impact of these actions on the revenue budget in these years. 2.5 Budget Gap A number of the assumptions contained in this budget have been reviewed, the provisional settlement has been announced and the council tax and business rates tax bases have been approved by the Planning & Licensing Committee. All these changes have impacted on the budget gap estimated for Rochdale Council as shown in Table The Savings Programme 2017/18 and 2018/19 identified group 1 and group 2 savings proposals which have been consulted upon from 15 th September to 31 st October 2016 and 24 th November 2016 to 9 th January Updated budget assumptions, changes from the provisional local government finance settlement and the Savings Programme have enabled a balanced budget to be proposed for 2017/18, 6.763m of which are of a one off nature which will need to be addressed in 2018/19. A full schedule of the savings proposals submitted for approval as part of the Revenue Budget 2017/18 is provided at Appendix 3. Table 6 outlines the budget gap and how this has been projected to be met in 2017/18 from the savings programme and changes to assumptions following the final settlement and other information received. 11

14 Table 6: Revenue Budget Gap 2017/ /19 Total Ongoing One off Ongoing One off Ongoing One off m m m m m m Budget Gap as at Cabinet 12th September Budget Assumptions GMWDA - reduction in pressure for levy Demographic Growth Transport Levy increase assumption reduced from 1% to 0% Reduction in Budget Pressure fund Review of Corporate Budgets Other Budget assumptions Final Local Government Finance settlement Adult Social Care Support grant Adult Social Care precept to 3% Changes to Education Services Grant/Funding Formula NHB - changes to scheme - updated for Settlement Council Tax Baseline changes from original assumptions Updated Budget Gap Saving Proposals not requiring service consultation Saving proposals requiring service consultation - Group Saving proposals requiring service consultation - Group Total of Savings Proposals Reserves movements Revised Budget Gap at January Recurrent Budget Gap 2017/18 - Recurrent Budget Gap 2018/ Appendix 1 provides the current budget position for 2017/18 and provisional forecasts for 2018/19 and 2019/20. The current service budget requirement for 2017/18 is m met from resources totalling m giving a balanced budget position for 2017/ Education Services Grant and Schools Funding Government has confirmed the 600m cut to the Education Services Grant (ESG), however the Education for All Bill, which would have removed councils' school improvement duties, is not progressing. The budget assumptions assume a reduction of 1.4m for ESG in 2017/18. 12

15 This assumes transitional ESG funding for the period April to August ( 0.850m). The ESG Retained Duties Grant remains at similar levels to 2016/17 ( 0.530m). This has been transferred to the DSG with Schools Forum agreeing for it be centrally retained by the LA to allow provision of the related services The Dedicated Schools Grant (DSG) is a separate ring-fenced grant which funds schools and education related issues. In 2017/18 this will be received in four blocks which are: Early Years funds provision of the early years free entitlement through a local formula together with support to providers. Schools funds primary and secondary schools through a local formula, for pupils aged In addition some former Education Services Grant (ESG) funding has been transferred into this Block for 2017/18; this funds support to schools provided by the Local Authority (LA). High Needs funds both pre and post 16 pupils with special educational needs from a range of providers. Central Schools funds growth in pupil numbers in schools Earlier in the year the Department for Education (DfE) agreed revised baselines for the split between the Blocks based on current spend. On 20 th December 2016 the government announced the School Funding Settlement. A summary of the main issues is outlined below: Schools Block Dedicated Schools Grant (DSG) per pupil amount is to remain at the agreed 2016/17 levels for Rochdale this is 4, per pupil Early Years Block DSG includes funding for both 2 year olds and 3-4 year olds. The rates have increased for 2017/18; 4.42 per hour for 3-4 year olds (was 4.28) and 4.30 per hour for 2 year olds. There is also additional funding for the increase in hours offered to eligible working parents effective from September High Needs Block an additional 130m nationally has been added to this for an increase in child population 2-18 for Rochdale this has given an additional 440k. Protection for schools The Minimum Funding Guarantee (MFG) is to remain at -1.5% meaning no school will lose more than 1.5% per pupil in funding. Pupil premium rates and Universal Infant Free schools meals funding to remain at 2016/17 levels. Year 7 Catch Up and Primary PE and Sports Premium to remain. 13

16 Table 7a: Dedicated Schools Grant (DSG) Funding for 2017/18 Total m Schools Block (final) Early Years Block (indicative) High Needs Block (indicative) Schools Central Block ** Total DSG 2017/ ** includes 0.530m funding from former ESG The DSG funding includes around 27.6m of funding for academies which will be recouped by the Department for Education (DfE) and distributed to them directly Although the DSG is provided in f our blocks, LA s in consultation with Schools Forum can agree switches between blocks based on local priorities and needs. After making adjustments agreed by Forum the following split between blocks is recommended for 2017/18. Table 7b: Dedicated Schools Grant Blocks Split 2017/18 Schools m High Needs m Early Years m Central Schools m LA Retained m Total m DSG Settlement Transfer Central Schools to Schools Centrally Retained agreed by Schools Forum Early Years Centrally Retained agreed by Schools Forum Transfer to fund High Needs budget pressure Total The Government s intention is to achieve maximum delegation of funding to schools, meaning that only in exceptional circumstances should funding be held centrally by the LA for the provision of central education services. It is however recognised that some funding has to be held centrally and the DfE have set out which services this relates to and the approval required for this. Schools Forum has agreed that 2.213m of funding be retained centrally by the LA for 2017/18. This includes a Growth Fund for increases in pupil numbers at both primary and secondary schools due to demographic pressures ( 0.950m); a policy has been agreed for the allocation of this funding. In addition schools have agreed a transfer of funding to the High Needs Block in 2017/18 to fund budget pressures relating to an increase in the number of children with special educational needs Maintained schools continue to be able to agree funding to be dedelegated. Forum members from the primary and secondary sector agreed that 2.634m of items be de- delegated for 2017/ The Schools block provides funding to primary and secondary schools under a locally agreed formula. There are no national changes required 14

17 to local formulae but the LA has again worked with schools to review the formula and ensure it is fit for purpose. It was agreed no changes were required for 2017/18. As in previous years any turbulence for individual schools will be smoothed by the nationally prescribed Minimum Funding Guarantee (MFG) calculation whereby no school will lose more than 1.5% per pupil combined with a locally determined cap where no school will gain more than 3% in their Individual Schools Budget The High Needs Block continues to provide funding for the LA to make additional provision for those children and young people with the greatest needs (often known as high need, low incidence special educational needs [SEN]). The High Needs Block funds provision in both mainstream, special schools and alternative provision (PRU) and the education of learners with learning difficulties/disabilities post 16 up to the age of The high needs block funding is based the revised baseline agreed with the DfE together with a share of the additional 130m provided nationally for an increase in the numbers of children 2-18 ( 0.440m). With increasing numbers of pupils presenting themselves with special educational needs there are anticipated budgetary pressures for the high needs block and schools have agreed a transfer of funding to support this area ( 0.353m) Funding for the 15 hours free entitlement for 3-4 year olds is given to providers based on a local formula which calculates an individual provider hourly rate. From September 2017 there is an increase in hours offered to eligible working parents. Funding for disadvantaged 2 year olds at a rate of 5.30 per hour is also included The Funding Settlement included an announcement that the government intends to introduce a national funding formula for schools from 2019/20. Further consultation on this commenced in December 2016 and will end in March Arrangements for changes to Early Years funding have been confirmed. Funding to providers will remain on a local formula but with more prescription from central government. Required changes to the local formula will be agreed under delegated powers / /20 Provisional Estimates The provisional estimates for 2018/19 to 2019/20 set out the resources the Council will receive in funding based on the best available information. In the provisional settlement announced on the 15 th December 2016 the Government provided indicative Settlement figures for 2018/19 and 2019/20. The Local Government Act Report identifies that the estimates for 2017/18, 2018/19 and 2019/20 have a high degree of risk due to uncertainties regarding the collection of income from both Council Tax and Business Rates and due to further reductions in Public Sector Spending announced in the Chancellor s Autumn Statement The provisional estimates for 2018/19 and 2019/20 are based on the indicative figures provided in the 2017/18 Final Local Government Settlement. On this basis and assuming we increase Council Tax by 4.99% in 2017/18 and 2018/19 and 1.99% 2019/20, we will have budgeted resources of m in 2017/18, m in 2018/19 and m 2019/20. 15

18 Table 8: Provisional Estimate and Council Tax 2018/19 Detail 2017/18 Proposed Budget 2018/19 Provisional Estimate Variation '000 '000 '000 % Our estimates of the resources available to the Council in 2018/19 result in a short fall in funding compared to our estimates of the resources we need to deliver services. The ongoing deficit in 2018/19 is 9.850m. In 2019/20 the ongoing deficit increases to m, detailed in Appendix 1. This is an increase of 5.531m The 2018/19 and 2019/20 final level of savings will depend on the outcome of subsequent Finance Settlements. 2.8 Medium Term Financial Strategy The Council s Medium Term Financial Strategy (MTFS) is provided at Appendix 8. The MTFS will be reviewed and updated during the year to reflect the latest position in regard to the Council s financial position, priorities and future plans. 2.9 Capital Programme 1 Budget Requirement 196, ,505-5, % Funded By: 2 Revenue Support Grant % 3 Top-up Grant 49,401 42,648-6, % 4 General Grants 12,556 14,019 1, % 5 Business Rates Retained 52,200 53, % 6 Net Requirements 81,874 80,674-1, % 7 Less: Collection Fund Surplus 4, Less: Collection Fund Adjustment Precept on Collection Fund 76,840 80,674 3, % 10 Council Tax (District Purposes) 1, , % The Capital Programme for 2017/18 to 2019/20 takes into consideration the priorities of the Council and the resources available to the Council. The approach for setting the 2017/18 capital budget has followed the steps below: Initial budget as provisionally approved at Budget Fixing Council (BFC) 24th February Review of 2016/17 and 2017/18 schemes taking into account spend to date and previous re-phasing on these schemes. Consideration of new schemes. 16

19 2.9.2 When a scheme is approved and the proposed spend is profiled across financial years, the scheme funding will be approved across these financial years and will therefore be considered as a priority in future years. Any reduction in the funding of these schemes will only be considered where contracts have not been entered into The Capital budget has been created in line with the Council s priorities: Place Plan aligning capital investment to support the borough s economic growth potential and continue to regenerate our town centres. Corporate Plan ensuring the borough maintains its high standard of quality building and public space. Asset Strategy aiming to hold fewer but more efficient assets, realising maximum value from the estate whilst safeguarding its staff, customer and other building users The Capital budget is funded from a number of sources; borrowing, capital receipts, and external funding & contributions. Borrowing has an implication for the Council s Revenue budget as the Council has to make provision to repay the cost of borrowing. The Capital Programme for 2017/ m and the provisional 2018/ m and 2019/ m, programmes are fully funded within the current budget assumptions. Appendix 4 provides details of each scheme. The funding available to the Council for Capital Schemes is detailed in table 9. Table 9: Capital Programme 2017/18 to 2019/20 - Summary Services 2017/ / /20 '000 '000 '000 Adult Services 2,047 2,047 2,047 Children's Services 14,282 7,664 5,256 Economy 17,100 25,020 7,204 Neighbourhoods 13,090 8,167 7,667 Public Health Total requirement 46,519 43,258 22,174 Funding Borrowing 11,100 8,920 11,104 External Grants & Contributions 18,681 11,678 9,270 Invest to Save 13,763 20,860 - Capital Receipts 2,975 1,800 1,800 Total funding 46,519 43,258 22, The Capital schemes in Appendix 4 can be categorised as follows: Annual Allocation - These schemes receive annual allocations either as a result of external funding, or because the Capital investment is essential for the Council to maintain current Service delivery or to meet statutory responsibilities. 17

20 Scheme started in previous years - These schemes are multi-year schemes that commenced during or before 2016/17. New Scheme - These are new schemes or schemes requiring additional funding for the 2017/18 capital programme The Council is able to borrow resources for capital schemes. The revenue implications of this option are that for every 1m of capital expenditure there is approximately 61k per annum of revenue cost to repay borrowing, over a 40 year period. If borrowing is required over a shorter period, the annual cost is greater but the overall cost is less Borrowing of 11.1m is required to fund expenditure relating to specific schemes in 2017/18. The revenue cost of this is approximately 0.9m per annum The current forecast uncommitted Capital Receipts balance at the end of 2016/17 is approximately 6m, and further income is forecast to be received from 2017/18 onwards relating to the sale of surplus Council properties. The Capital Programme as shown in Appendix 4 confirms those capital schemes that are proposed to be funded from unallocated Capital Receipts. 3. Part 2 Collection Fund and Calculation of Council Tax and Business Rates 3.1 Collection Fund 2017/ As a billing authority the Council is required to maintain a separate Collection Fund. The only transactions dealt with through the Collection Fund relate to the collection of council tax income, national non-domestic rates and the payment of precepts The amounts of Council Tax are expressed per Band D property and are shown separately for each precepting authority the Council, Police and Fire authorities Under Current Regulations billing authorities must estimate the annual surplus or deficit on the Collection Fund. They must then notify the relevant precepting authorities of the amount calculated as their share. The position in January and notified to the Police and Fire Authorities estimated that the Collection Fund will be in a surplus position of 5.017m as at the 31 st March The Council s share of this forecast Collection Fund surplus as at 31st March 2017 is 4.359m. This will impact on the Council s General Fund budget for 2017/ Table 10 shows the calculation of the Council Tax for district purposes and the amount to be precepted on the Collection Fund by the Police and Fire Authorities. A comparison with 2016/17 is provided. 18

21 Table 10: Calculation of the Council Tax Precept Council Tax (Band D) Increase 2016/ /18 % 1 District Requirements 1, , % Precepts 2 - Police % 3 - Fire and Rescue % 4 Total 1, , % The Council Tax Base takes into account a bad debt provision and new and decreased assessments. The overall estimated collection rate assumed in the calculation has been increased to 97.0% (95.8% in 2016/17) to reflect current collection performance The increase in the Police and Crime Commissioner precept for 2017/18 was approved as 5 for a Band D property, in line with the flexibility granted by the Government in the Referendums relating to Council Tax Increases Report 2017/ The Greater Manchester Fire and Rescue Authority has approved a 1.99% increase in its precept for 2017/ Recommended Council Tax The Council Tax recommended for 2017/18, including the Police and Fire precepts, is 1, for Band D properties. The tax for individual bands is shown in Table 11, below: Table 11: Recommended Council Tax per Band Council Tax Levels Band 2016/ /18 Increase % Band A 1, , % Band B 1, , % Band C 1, , % Band D 1, , % Band E 1, , % Band F 2, , % Band G 2, , % Band H 3, , % 19

22 3.3 Collection of Business Rates The amount the Council is required to collect in business rates in 2017/18 is m. The Council is required to pay 1% of business rate income to the Fire and Rescue Authority of the amount of Business Rates that the Council collects from local businesses. Table 12: Distribution of Business Rates 2017/18 m % Central Government % GM Fire and Rescue Authority % RBC Business Rates Retained % RBC Business Rates Renewable Energy RBC Total Business Rates Total Collection Any growth or loss in Business Rates is managed through the Collection Fund with any surplus or deficit on the Collection Fund being distributed to in the following financial year The Department of Communities and Local Government (DCLG) has been notified of the intention to continue the Business Rates Pool for Greater Manchester plus Cheshire East and Cheshire West and Chester in 2017/18, and the Pool has been confirmed in the Final Settlement. The purpose of pooling business rates across the individual Authorities is not intended to alter individual Authorities income levels but to retain any levy that might be payable by certain of the Authorities to Central Government. Any sum gained, after applying the agreed allocation to the levy authorities, would be retained by the pool for investment within Greater Manchester (GM) and other non-greater Manchester Authorities involved in the pool The Local Government Settlement 2017/18 included the introduction of the 100% retention of Business Rates for identified regional pilot authorities, including Greater Manchester. The pilot authorities will each retain 100% of locally-raised business rates. In return Greater Manchester will forgo Revenue Support Grant (RSG) and the Public Health Grant. Authorities tariffs and top-ups will be adjusted to ensure these changes are cost neutral. The detail of the changes to tariff and top-ups have been finalised with the pilot areas confirmed in the final settlement. The Government will also make changes to secondary legislation to confirm the new shares of business rates income and safety net thresholds. 20

23 21

24 GENERAL FUND SUMMARY ESTIMATES 2017/ /20 APPENDIX 1 SERVICE 2017/ / /20 '000 '000 '000 1 Adult Care 55,786 57,558 59,703 2 Childrens Services 60,885 60,315 59,197 3 Economy 11,154 16,753 16,898 4 Neighbourhoods 55,068 46,617 46,969 5 Resources 4,363 4,544 4,607 6 Public Health and Wellbeing 21,898 21,776 21,764 7 TOTAL 209, , ,138 8 Finance Control (Note 1) , Contingency (Note 2) ,559 1, SERVICES SUB TOTAL 207, , , Budget Pressures Fund Saving Proposals -4,646-5,594-4, TOTAL REQUIREMENTS 202, , , Contribution To/(From) Reserves/Balances -6, NET EXPENDITURE REQUIREMENTS 196, , , BUDGET REQUIREMENT 196, , ,519 RESOURCES Locally Generated Funding 17 Council Tax -76,840-80,674-82, Business Rates Retained -52,200-53,164-54, Collection Fund Surplus -4, Collection Fund adjustment TOTAL LOCALLY GENERATED FUNDING -134, , ,427 Government Grants 22 Revenue Support Grant General Grants -12,556-14,019-17, Business Rates Top-Up Grant -49,401-42,648-35, TOTAL GOVERNMENT GRANTS -61,957-56,667-53, TOTAL RESOURCES -196, , , BUDGET REQUIREMENTS 0 9,450 15, One year only savings UNFUNDED REQUIREMENT 0 9,850 15,381 22

25 Appendix 2 Budget Assumptions Area of Budget Council Tax General Increase (For Planning Purposes 2018/19 and 2019/20) 2017/18 Assumption 1.99% Increase 2018/19 Assumption 1.99% Increase 2019/20 Assumption 1.99% Increase Adult Care Precept 3% Increase 3% Increase 0% Increase 4.99% 4.99% 1.99% Total Council Tax Increase Increase Increase Revenue Support Grant* Business Rates (NNDR)* Top Up Grant* General Grants Settlement Funding Overall Impact 24.1% Decrease 10.5% Decrease 16.8% Increase 0.2% Increase 7.9% Overall Decrease 21.5% Decrease 27.6 % Decrease 3.2% Increase 3.6% Increase 3.2% Increase 3.6% Increase 14.6% Increase 3.3% Overall Decrease 34.7% Increase 0.7% Overall Decrease Pay 1% Increase 1% Increase 1% Increase Superannuation Contribution Rate 20.5% 20.5% 20.5% (0.8% Increase) (0.0% Increase) (0.0% Increase) Prices** 0% 0% 0% Discretionary Fees & Charges 5% Increase 5% Increase 5% Increase Underlying Waste 1.6% 4.6% Increase 0.5% Increase Disposal Levy Increase Underlying PTA Levy 0% Increase 0% Increase 0% Increase * Pre 100% Retenetion ** Prices Contractual arrangements and other significant inflation issues will be considered on a case by case basis. 23

26 Appendix 3a Saving proposals requiring service consultation - Group 1 Recurrent One off Recurrent One off Saving Proposal Ref Area of Budget: 2017/ /19 m m m m Adult Care AC STARS Increased Productivity AC Changes to Adult Care charging policy AC Review of staffing structure in Adult Care Commissioning Team AC Review Mental Health staffing arrangements Total Adult Care Children's Services CS Reduction in Assistant Director support budget CS Reduction in Emergency Duty Team budget CS Rationalisation of the Adoption and Fostering Service CS Reduction in Business support CS Reduction in Edge of Care Budget provision CS Review of Fostering and Adoption Service CS Safeguarding Unit reduction in staffing CS workforce development staffing changes CS Remodelling of the Education Welfare Service CS Proposed cessation of Mobile Play Team CS Rationalisation of the additional funding for Child & Adolescent Mental Health Service CS Reshape of Children's Social Care delivery CS Restructure of Youth Offending Service CS Remodel and Review the Contact Service CS Review of funding for Play Schemes CS Proposal to rationalise the Play and Childcare Development Team CS Remodel of the Common Assessment Framework (CAF) Team CS Rationalise the staffing establishment of the Commissioning/Placement Team CS Rationalisation of support to the Rochdale Borough Safeguarding Children Board (RBSCB) aligned to changes in legislation Total Children's Services Economy EC Reductions in staffing across Planning and Building Control Total Economy Neighbourhoods NH Street Lighting Team Restructure (Inc. Oldham) NH Communications Team Restructure NH Proposal to review the Legal Advice: Welfare, Debt and Housing Support NH Review of Community Centre grant funding NH Restructure of Strategic Housing Service NH Facilities Management Restructure NH Restructure of Environmental Management Service NH Rationalisation of Enforcement activity across the Council NH Neighbourhoods Business Support Team resturcture and rationalisation NH Management Information Systems Team restructure NH Restructure - Corporate Policy, Performance and Improvement Team NH Rationalisation of Township staffing structure NH Almagamate and restructure Projects and Highways Teams NH Restructure of the ICT Systems Team Total Neighbourhoods Public Health and Wellbeing PH Removal of Buy with Confidence Scheme N/A Public protection post Total Public Health and Wellbeing Resources RS Proposal to reconfigure the Revenues & Benefits Services RS Proposal to reconfigure Finance Services RS Workforce and Organisation Development Restructure Total Resources Overall Total

27 Appendix 3b Saving proposals requiring service consultation - Group 2 Recurrent One off Recurrent One off Saving Proposal Ref Area of Budget: 2017/ /19 m m m m Adult Care AC Re-design of Prevention Services Total Adult Care Children's Services CS Reduction in Edge of Care Budget provision CS Review of Practice Improvement CS Restructure of Children's and Adult's Occupational Therapy Services Total Children's Services Neighbourhoods NH Communications Team staffing reduction NH Community Group subsidies NH Review of Library Services NH Review of mangement arrangements in the Library Service Total Neighbourhoods Resources RS Review the Finance Services Structure (Finance Services) RS Review the Finance Services Structure (Revenues and Benefits Services) Total Resources Overall Total

28 Appendix 4 STATEMENT OF SERVICE CAPITAL PROGRAMME REQUIREMENTS SERVICE 2017/18 Estimate /19 Estimate /20 Estimate Adult Care 2 Children's Services 3 Economy 4 Neighbourhoods 5 Public Health and Wellbeing 2,047 2,047 2,047 14,282 7,664 5,256 17,100 25,020 7,204 13,090 8,167 7, TOTAL 46,519 43,258 22,174 26

29 Provisional Capital Programme 2017/18 to 2019/20 Appendix 4 Capital Programme Requirement 000 Prudential Borrowing 000 Capital Receipts 000 Government Grants and External Contributions 000 Invest to Save 000 CAPITAL PROGRAMME 2017/18 TO 2019/20 Directorate Scheme Name Category 2017/ / / / / / / / / / / / / / /20 Adult Services Disabled Facilities Grant Annual Allocation 2,047 2,047 2, ,047 2,047 2, Children's Services Devolved Formula Capital Annual Allocation Children's Services New Place Planning Annual Allocation 11,818 5,200 2, ,818 5,200 2, Children's Services Schools Capital Condition Programme Annual Allocation 1,966 1,966 1, ,966 1,966 1, Economy Heywood South/Junction19 New Scheme Economy Asset Development Fund New Scheme 1,000 1,000 1, ,000 1,000 1, Economy Town Hall Square/River Reopen Phase II New Scheme 890 1,530 1, ,530 1, Economy Rochdale Town Hall Restoration New Scheme - - 3, , Economy Drake Street - Phase II New Scheme Economy East Lancashire Railway New Scheme Economy Commercial Investment Fund New Scheme 10,000 20, ,000 20,000 - Economy Rochdale & Littleborough Flood Relief Scheme New Scheme 1,600 1,600 1,600 1,600 1,600 1, Economy Town Centre East Whole Life Costs New Scheme Economy Rochdale Market Scheme started in previous years 2,250-2, Economy Rochdale Town Hall & Town Hall Square Scheme started in previous years Economy Town Centre East Scheme started in previous years Neighbourhoods Coroners' Service accommodation New Scheme Neighbourhoods Burglary Reduction Scheme Annual Allocation Neighbourhoods ICT Infrastructure Refresh Programme Annual Allocation Neighbourhoods ICT Programmes (Staff) Annual Allocation Neighbourhoods Townships Capital Programme Annual Allocation Neighbourhoods Highways - Potholes initiative New Scheme Neighbourhoods Highways Flooding Infrastructure New Scheme Neighbourhoods Gateway Schemes New Scheme Neighbourhoods Gully Replacements New Scheme Neighbourhoods Housing Standards Fund Annual Allocation Neighbourhoods Replacement Parks/Street Machinery Annual Allocation Neighbourhoods Rights Of Way Annual Allocation Neighbourhoods Upgrade Play Equipment Annual Allocation Neighbourhoods Vehicle Replacement Programme Annual Allocation Neighbourhoods Vehicle Replacement Programme - Refuse Collection Vehicles New Scheme - every 6 years 1, , Neighbourhoods Number 1 Riverside Energy Efficiency New scheme Neighbourhoods Waste Bin Replacement Programme Annual Allocation Neighbourhoods Asset Management Group Annual Allocation 1,750 1,750 1,750 1,750 1,750 1, Neighbourhoods Local Transport Plan Annual Allocation 2,249 1,967 1, ,174 1,967 1, Neighbourhoods Clearance & Empty Properties New Scheme Neighbourhoods Kirkholt Investment Scheme started in previous years 1, , Public Health Link4Life equipment Scheme started in previous years TOTAL 46,519 43,258 22,174 11,100 8,920 11,104 2,975 1,800 1,800 18,681 11,678 9,270 13,763 20,860-27

30 Appendix 4 Adult Care Capital Programme 2017/18 to 2019/20 No SCHEME NAME SUMMARY AND KEY OBJECTIVES Budget 2017/18 '000 Budget 2018/19 '000 Budget 2019/20 '000 1 Disabled Facilities Grants (DFGs) The legislative framework governing DFGs is provided by the 'Housing Grants, Construction and Regeneration Act 1996'. Since 1990, local authorities have been under a statutory duty to provide grant aid to disabled people for a range of adaptations in their homes. 2,047 2,047 2,047 Total 2,047 2,047 2,047 Children s Services Capital Programme 2017/18 to 2019/20 No SCHEME NAME SUMMARY AND KEY OBJECTIVES Budget 2017/18 '000 Budget 2018/19 '000 Budget 2019/20 '000 1 Devolved Formula Capital 2 New Place Planning Schools will develop and commission individual schemes to improve condition and suitability within their buildings with guidance and approval from the Council. Provision of additional school places to meet statutory duty through a programme of works combining internal remodelling, new build or demountable classroom units ,818 5,200 2,792 3 Schools Capital Condition Programme Development of a programme of works to resolve major condition and improvement issues in school buildings in line with the Council's Asset Management Strategy and 1,966 1,966 1,966 Local Policy Statement. Total 14,282 7,664 5,256 28

31 Economy Directorate Capital Programme 2017/18 to 2019/20 No SCHEME NAME SUMMARY AND KEY OBJECTIVES 1 Heywood South/Junction19 South Heywood Area Wide Improvement Programme proposals for a new link road and network improvement from the M62 junction 19 through Heywood to Pilsworth, which will create the opportunity for delivering investment in housing and employment growth. Budget 2017/18 '000 Appendix 4 Budget 2018/19 '000 Budget 2019/20 ' Asset Development Fund 3 Town Hall Square/River Reopen Phase II 4 Rochdale Town Hall Restoration 5 Drake Street - Phase II 6 East Lancashire Railway (ELR) To create jobs and build the local economy by buying properties/developing properties. 1m was also allocated in 2016/17. The completion of the high quality public realm around the Town Hall to enhance the setting with a possible focus on Rochdale's cooperative heritage. Creating a successful, well-loved public realm, befitting of the Town Hall and wider conservation area, helping to attract a greater number of visitors and residents to the town centre. The scheme aims to work with businesses and property owners to restructure the mix of uses, improve infrastructure and connectivity, increase footfall and promote independent retail and increased town centre living in the area. The scheme is to support ELR extension into Castleton to connect direct rail access to mainline giving accessibility to visitors from across northern England together with investment at Heywood station. The ELR mainline project will be a landmark heritage attraction for the Borough with significant physical and economic benefits for regeneration of Castleton District centre. 1,000 1,000 1, ,530 1, , Commercial Investment Fund To implement the objective contained within the Council's Asset Strategy by enabling the Council to invest in property to secure a financial return by way of revenue income. "To manage the income-generating assets to improve yields and financial return, to secure the assets value as an investment, making a defined contribution to the Council s financial strategies. The Council will aim to improve the overall financial yield of the portfolio by reducing its management costs and improving its investment profile". 10,000 20,000-8 Rochdale & Littleborough Flood Relief Scheme The River Roch catchment is the main river network in Rochdale Borough and is vulnerable to extensive flood risks affecting communities, businesses, town centres and infrastructure including power, rail and roads. The Environment Agency has identified the River Roch catchment as one of their regional priorities for their capital investment programme and propose a series of flood storage areas and improved defences to reduce the risk of serious flooding for over 1000 homes and businesses. The Council will part fund the improvement. 1,600 1,600 1,600 9 Town Centre East Whole Life Costs Construction of the Rochdale Riverside scheme is due to start in 2017 and be complete in Rochdale Market To provide a permanent outdoor market and indoor market in Rochdale town centre. 2, Rochdale Town Hall & Town Hall Square Improvements to the Town Hall and surrounding public space to support the use of the building as a visitor attraction and heritage asset Town Centre East Funding for various projects in Town Centre East to deliver the Town Centre East (Genr8) scheme Total 17,100 25,020 7,204 29

32 Neighbourhoods Directorate Capital Programme 2017/18 to 2019/20 Appendix 4 No SCHEME NAME SUMMARY AND KEY OBJECTIVES Budget 2017/18 '000 Budget 2018/19 '000 Budget 2019/20 '000 1 Coroner's Service accommodation To make alterations and improvements to the accommodation of the Coroner's Service Burglary Reduction Scheme 3 ICT Infrastructure Refresh Programme Implement alleygating schemes and gating orders on alleys to reduce the number of burglaries and improve neighbourhood safety. To refresh, on a rolling programme the ICT estate. To remove the need for individual services & directorates to hold funds related to ICT equipment. Preventing purchasing of non-strategic & inappropriate ICT. To control and make the spend on ICT equipment the most efficient and cost effective by maintaining a relatively small annual amount as opposed to a very large investments every 7/8 years ICT Programmes (Staff) To deliver the Council's ICT projects utilising existing ICT staff, to reduce the Capital required each year. The programmes deliver a variety of objectives for each business area and are assessed against business cases to check that they are in line with corporate objectives Townships Capital Programme An annual allocation of Capital Funds allocated on a pro rata basis and agreed by each of the 4 Township Committees Highways - Potholes initiative Additional funding for permanent repairs to potholes across the borough Highways Flooding Infrastructure 8 Gateway Schemes Replacement of 185 gullies per year at various high risk locations within the Borough; infrastructure works to deal with flooding on carriageways (10 sites); infrastructure works to deal with areas at high risk of flooding. To fund signage/ banners and enhanced Environmental Management schemes for gateways and principle corridors Gully Replacements Replacement of gullies at various locations in the borough Housing Standards Fund 11 Replacement Parks/Street Machinery 12 Rights Of Way 13 Upgrade Play Equipment 14 Vehicle Replacement Programme 15 Vehicle Replacement Programme - Refuse Collection Vehicles Scheme proposes to improve private sector dwellings and environments. Interventions include: -emergency repairs to owner-occupied properties -works in default to private rented properties -corrective works to houses in multiple occupation -tenancy/rent bonds for residents desperate to access decent accommodation unable to access social housing. The programme is a rolling replacement scheme for replacement of the Council's 550 plus pieces of machinery. The programme aims to replace assets when they have exceeded the most cost-effective period of operation. The programme is a rolling scheme for carrying out the statutory function of maintaining the Council's Rights of Way network. To maintain, within legislative requirements and guidelines, the current level of Fixed Play provision across the borough. The programme is a rolling replacement scheme for the Council's 200 plus vehicles. The programme aims to replace assets when they have exceeded the most cost-effective period of operation, ensuring the authority is compliant with legislation covering safety and exhaust emission standards. It also ensures Value for Money in relation to future maintenance requirements. An Invest to Save scheme to purchase 10 refuse collection vehicles rather than continue to hire the vehicles. The hire contract expires during 2017/ , Number 1 Riverside Energy Efficiency Invest to Save scheme to utilise equipment at Number 1 Riverside to reduce electricity costs Waste Bin Replacement Programme 18 Asset Management Group 19 Local Transport Plan 20 Clearance & Empty Properties 21 Kirkholt Investment Scheme is to replace wheelie bins which are no longer fit for purpose, and deal with increased demand for new bins as they were first introduced in 1991 and have an estimated life of 10 years. The scheme may also increase recycling rates which in turn would reduces the cost of waste disposal. To adequately maintain the property portfolio and ensure that the Council comply to any statutory regulations. The scheme also aims to reduce the maintenance backlog and improve the reduced property holding to accommodation standards. To continue the aspirations of the Rochdale Highways Capital Programme and be more effective in identifying and responding to the Local Transport Plan shared priorities of Safety, Air Quality, Congestion and Accessibility. Includes 75k in 2017/18 for road maintenance and signage improvements. Invest to save proposal to bring empty private sector properties back into use. Investing capital funding in staffing to work with and enforce against private sector owners, offering incentives, undertaking works in default and acquiring rundown properties to be leased to and refurbished by housing associations. This scheme aims to deliver dramatic improvements in Kirkholt, the largest estate in the borough ,750 1,750 1,750 2,249 1,967 1, , Total 13,090 8,167 7,667 Public Health & Wellbeing Capital Programme 2017/18 to 2019/20 No SCHEME NAME SUMMARY AND KEY OBJECTIVES Budget 2017/18 '000 Budget 2018/19 '000 Budget 2019/20 '000 1 Link4Life Equipment On-going update and replacement of leisure centre equipment across the borough. Funding to cover the prudential borrowing is paid from Link4Life to the Council via the contract fee. This saving is built into contract/ efficiencies with Link4Life Total

33 Appendix 5 STATEMENT OF SERVICE REVENUE RQUIREMENTS SERVICE 2017/18 Estimate /19 Estimate /20 Estimate Adult Care 55,786 57,558 59,703 2 Children's Services 60,885 60,315 59,197 3 Economy 11,154 16,753 16,898 4 Neighbourhoods 55,068 46,617 46,969 5 Resources 4,363 4,544 4,607 6 Public Health and Wellbeing 21,898 21,776 21,764 7 TOTAL 209, , ,138 31

34 Appendix 5a 32

35 Appendix 5b 33