Appendix 2(c)
52
Budget Development Process 2012/13 -2014/15
Savings/Income Generation Options
Savings Option
Fees and Charges – Income Generation
Directorate
Community and Customer Services
Service Area & ABB Link
Community and Customer Service – Whole Department
Narrative Description of Savings Option
This option is made up of the following three elements:i
To cease the operation of the staff easy access scheme across all leisure centres
ii
To reduce the discount available for public easy access card holder from 50% to 25%
discount
iii
To increase Fees and Charges by 4% above the inflationary increases.
Savings/Income Generation Option Amounts
2012/13:
£223,000
2013/14:
£223,000 not profiled (£450,000 target)
2014/15:
£223,000 not profiled (£450,000 target)
2012/13
i
Staff Easy Access = £26,000
ii
Public Easy Access = £14,500
iii
Fees and Charges 4% Increase = £182,500
Total saving = £223,000
2013/14 – Not profiled at this stage.
2014/15 – Not profiled at this stage.
Details on the Calculation of Savings Option Amounts
Staff Easy Access
Deleting/withdrawing the current staff Easy Access Scheme to leisure facilities would result in
increased income of £26,000 based on retaining the same level of customer usage. (Leisure
and Sport currently generate 27,000 staff easy access attendances per annum).
Public Easy Access
Reducing Public Easy Access Scheme to leisure facilities by 25% will result in an increased
income of £29,000 based on retaining the same level of customer usage. (Leisure and Sport
currently generate 36,000 public easy access attendances per annum). Factoring in a drop off
in attendance of 10% would reduce this saving to £14,500.
Appendix 2(c)
52
Fees and Charges Increase
Current Income
Leisure and Sport
£2,825,000
Arts & Museums
£ 250,000
CLD
£ 175,000
Libraries
£ 225,000
Customer Services
£ 25,000
Registrations
£1,000,000
Revs and Bens
£ 50,000
Area Management
£ 15,000
TOTAL
4% increase
£
113,000
£
10,000
£
7,000
£
9,000
£
1,000
£
40,000
£
2,000
£
500
£
182,500
The 4% increase is in addition to the inflationary increase of 2.5%. Community and Customer
Services Management Team will have flexibility in how to apply the fees and charges to
achieve the target.
* A small amount of harmonised fees and charges will have an effect of School Services facility
fees, who, to retain harmonisation, would require to increase their charges by the same %.
Details on Staffing Implications and how this will be managed
There would be no staffing implications to any of the savings identified above
Issues/Concerns Regarding Deliverability of Indicated Savings
Staff Easy Access:
At present staff at DGC and NHS currently receive a 25% discount on swim and gym activities.
The risk associated with achieving the target amount will depend on usage being retained at
existing levels for those who currently use the Staff Easy access card.
Public Easy Access:
The public are able to qualify for easy access to leisure and sport facilities which enables a
50% reduction in price for access to Swim and Gym activities. As with the staff easy access
there is no guarantee attendances will remain at the current level therefore a 10% drop off has
been factored in to this group when only a 25% discount applies however the risk is that there
is a greater than a 10% drop off and income targets may not be achieved. This proposal has a
negative impact on low income and other vulnerable groups.
Fees and Charges:
There is an agreed 2.5% annual inflationary increase for Fees and Charges across CCS, this
forms part of the annual agreed budget and will be reviewed for sustainability as part of 12/13
budget process. A 4% increases above that rate may result in a reduction of usage and would
impact on the achievability of this saving.
Appendix 2(c)
52
Risk Effect Assessment
Potential Effect
2
Effect on Service User
The service will remain the same for the service user
Effect on Staff
1
There will be no disruption to the service (staff members will lose their discount scheme)
Effect on Other Council Services
1
Harmonised Fees and Charges exist across Community and Customer Services and School
Services.
Effect on Council’s Agreed Priorities
3
The council priorities may be impacted as a target group of users are identified through Easy
access, however a scheme will remain in place
Effect on ability to attract External Funding
There will be no effect on external funding
Total Potential Effect
1
8
Measures to Reduce/Address Risks and Minimise Any Negative Impacts
Tolerate:
Staff Easy Access cards – Ensure staff users are aware of changes and promote additional
ways of purchasing gym and swim sessions for regular users (profiles plus)
Public Easy Access – Ensure public easy access holders are aware of % discount rates
through mail out prior to price changes in April 2012
Fees and Charges Increase – Notification of price changes / increases in same
mechanisms as used previously
Impact Assessment Summary
External Assessment:
Impact Summary – 0 positive, 5 negative, 6 Neutral
Impact on Disability – a medium negative impact. There is a regional branch of disability
sport that provides active structure for those wishing to participate in sport. Although there is
a reduction in the benefit offered to disabled groups it should be recognised that the benefit is
not being removed but reduced i.e. 50% to 25%
Impact on Age – a medium negative impact on age. This relates to young people or older
people being able to access services for which there is a charge.
Impact on Economic Sustainability – a low negative. Although the increases mean the
Council’s leisure rates are high in comparison to other Councils, they are still lower than local
private sector providers. Other increases are minimal.
Impact on Social Sustainability – a medium negative impact. Increased charges may have
the greatest impact on low income customers. This could be addressed through greater
promotion of free activities that are open to the public
Impact on Health – a high negative impact. This could be addressed by Public Health
practitioners, and the Joint Health and Wellbeing Team, who may be able to provide greater
support around health related participation.
Summary of Actions:
None