` ` Community Forum HBBC : Funding and Council Offices Relocation to site on the corner of Hawley Road and Rugby Road 7 October 2010 Steve Atkinson, Chief Executive Sanjiv Kohli, Deputy Chief Executive

` ` National and Local Context Coalition Government Announcements Need to find 25% - 40% savings over life of this Parliament What does this mean for HBBC?

` ` HBBC Funding GROSS BUDGET:circa £40m NET BUDGET REQUIREMENT:£11.6m FUNDED FROM FINANCE SETTLEMENT:£7.4m FUNDED FROM COUNCIL TAX:£4.2m

` ` So, what does 25% - 40% cuts mean? Reduction in Central Government Funding £1.85m - £2.96m OR Reduction in Net Budget Requirement £2.9m - £4.64m Range could be £1.85m to £4.6m (£7.4m) (£11.6m)

` ` Budget Reductions HBBC made a head start: Medium Term Financial Strategy 2010 to 2013 already assumed a 15% reduction in Central Government funding over the three years Over three years saved £2.2m Of which Senior Management savings of £250,000 Other staff savings - £430,000

` ` Rationale for Decision on Council Offices Not only about saving existing base costs but also avoiding future costs to Tax Payer

` ` Options Considered In 2008 Council made the decision that current Council offices at Argents Mead were not fit for purpose Refurbishment cost £6.5m - Not Affordable The main alternatives considered: Extension of Florence House with shop front customer centre The Atkins Development (short term accommodation) The Bus Station Development The former Flude’s Development Redevelopment (new build) on Argents Mead site New Build on Southfield Road (Richard Roberts Site)

` ` The Development

` ` Development Advantages Atkins Business Case Supported Cost of relocation to Bus Station saved (1 office move) All HBBC services (inc Data Centre) are co-located in custom designed development (Leisure Services remain at the current Leisure Centre Option with partners) Financial agreement to minimise H&S risks at Argents Mead for extended accommodation period Cost to refit 17,000sq/ft space at the Bus Station or Cost of additional accommodation saved (Civic and Florence House impacts) Benefit of £2.75m capital receipt in 2014 Move to sustainable development achieved earlier (potential 3 years) Potential partnership opportunities with financial incentives and ongoing shared revenue costs (room for up to 44,000sq/ft if required) Parking solution for HBBC employees/visitors/members/partners Green Travel option with close links to Rail and Bus routes Already has planning permission

` ` Development Disadvantages Lost investment in Atkins building (some areas fitted out to our requirements are not immediately suitable for small managed workspace units which may have Capital implications for HBBC) Lease option for 150 yrs lost in favour of Capital receipt (£2.75m) Potential delay in Capital receipt from Argents Mead disposals

` Capital Cost Implications ` A) Previously

` Capital Cost Implications ` B) Now

` ` Revenue Savings Detailed Projections:- Over next seven years when compared with alternative of moving to Atkins and then the Bus Station: Revenue Savings - £217,986 OR 5.5% in Council Tax

` ` Any Questions?