Local Government Equity Report

Report generated by: Equity version 3.3.1.2
File: Local Government.eq3
Report Created: 28/03/2006 16:07

Author: Bob Kitchen
Company: Catalyze Ltd

Local Authority Public Works Department demonstration
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Background
---------------

The number of possible budget combinations on this model is approximately 332 million

This model is based on a fictitious Local Authority:- Wharfedale Metropolitan Borough Council.

The Department concerned, the Public Works Department, is reviewing its revenue budget allocation for the coming financial year to agree:-

a) the best way of spending the current allocation, and
b) what would happen if the department had less, or more, revenue budget allocated by the Authority.

The Department covers a number of activities, most of which are technical and/or infrastructure based areas of service.

Before the revenue budget workshop commenced, each service area manager (i.e. budget holder) reviewed his/her budget and determined a number of alternative strategies at different levels of spend. These strategies are costed and included in the model as levels varying from the status quo spend level.

Review of the envelope with the proposed package set to status quo levels shows that some service areas should take cuts and the money released reinvested in other service areas.

Generally in revenue budget workshops the group then review the impact of a cut, say of 5%, on their revenue budget, to enable them to recommend both a pattern of spend and show the impact of this cut to their elected members.

In fact the closest package to status quo (9750k) less 5% (i.e. 9262k) on the efficient frontier is one at 9302K. This package reflects a saving of 4.6% but with a 31% increase in benefits over the proposed package (798 vs 610 points of relative value). Similarly the group could consider the Cheaper 'C' package which gives a saving of 1528k for loss of only 1.3% points of relative value (602 vs 610).

To prepare for the (at this stage, yet to be announced) spending targets from central government, groups at this form of workshop will generally agree a number of budgets to cover most eventualities foreseen. These budgets will generally be based on, but may differ in some respects from, the recommended packages from the order of priority.

To illustrate the text facilities in Equity, the first four areas have been fully described.

Structure

Envelope Graph

Crossing Patrols

Description: School crossing patrols

Covering known potential accident crossings near schools in the borough.

Most employees are part time and often retired.

Options

NameDescription
100 sites & wardens100 sites and 100 wardens

Significant risk of adverse publicity

Cover reduced and some crossings unattended when absence/illness occurs

40 least used sites abandoned - Otley High (4), Otley Grammar (8), Skipton RC (8), Skipton Independant (8), Otley Main (8), Otley Junior (4)

Little change of pelicans being substituted in this financail year
140 sites & wardens140 sites and 140 wardens

Less cover than the status quo.

Adverse impact only noticable when wardens absent.

Part time retired ardens are not particularly reliable due to age-related ill health problems. Generally in the winter months between 1.5% and 3.2% of wardens are unavailable for any one session (morning, lunchtime or end of school).
140sites & 170warden140 sites, 170 wardens

30 extra wardens cover for illness, holiday absense etc.
140sites & 180warden180 wardens, 140 sites

Provide more cover on the exiting sites by employing an extra 10 wardens.

This should reduce the number of crossings without wardens to almost none.
155sites & 170warden155 sites, 170 wardens

Add next most vulnerable 15 sites without inceasing cover.

Inpractice this means a cover reduction from 30 wardens to 15.

Input Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
100 sites & wardens260.00 000
140 sites & wardens320.00 55050
140sites & 170warden335.00 65055
140sites & 180warden340.00 850100
155sites & 170warden350.00 100090

Xmas Decorations

Description: Provision of lights and other decorations for the Christmas period ( from mid-November to second week in January).

Options

NameDescription
No decorationsNo decorations in any township

Remove all Xmas decorations and sell off current lights. No cost next year as no storage space required.
Otley onlyLights in Otley only.

Lights provided in Otley town centre from mid-November to second week in January.

No lights provided in Skipton town centre.
SkiptonStatus quo plus new lights in Skipton.

Lights provided in Otley & Ilkley & Skipton town centres from mid-November to second week in January.

Requires purchase of new light set for Skipton. This will be found from capital budget if strategy is approved.
IlkleyStatus quo

Lights provided in Otley & Ilkley town centres from mid-November to second week in January.

No lights have been provided in Skipton for several years. Traders and some members complain bitterly.

Incremental Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
No decorations0.00 000
Otley only40.00 0100100
Skipton40.00 010085
Ilkley40.00 05060

Winter Salt etc

Description: Provision of gritting and salting on the borough's roads during the winter months.

This is generally required for around 30 nights per year between December and early March.

Options

NameLong NameDescription
Ice alerts only Ice alerts only

Grit only when cold spot areas are reported/known to have icing problems.

Basically a reactive strategy, with risk of accidents.

All cold spots will be gritted within 3 hours of alert being received so the cold spot will remain a hazard for up to that time after alert being received.
Cold spots only Coldspots only

Cover identified cold spots only - about 20% of SQ coverage.

Risk of accidents at other spots when icing moderate to severe.
Strategic & major rd Strat & maj rds

Cut coverage down to around 50% of SQ.

Coverage will be for strategic & major roads only, no cover on estates or minor roads.
As proposedStrategic, Major and specified minor roadsStatus quo

4 purpose built gritters, not very flexible for any activity other than gritting.

Currently a reasonable level of coverage, about 80% of the borough's roads are treated and about 65% of these before icing occurs (on average) in Jan/Feb - the worst months.
As Proposed +gritter SQ + 5th gritter

Buy a 5th gritter to add to the fleet, new gritter will have greater flexibility for use in other activities (detachable gritting device, snowplough etc).

Gives full coverage of roads with 100% of all strategic & major roads gritted before icing occurs, 85% of all other roads gritted before icing occurs.

Input Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
Ice alerts only250.00 000
Cold spots only300.00 302025
Strategic & major rd370.00 604540
Strategic, Major and specified minor roads430.00 756060
As Proposed +gritter480.00 100100100

Car Parks

Description: Provision of car parking facilities in the borough.

Currently there are a mix of types, with multistory, off-road and roadside parking available in all towns.

Options

NameDescription
Make self- financingSelf financing

Fully self financing with an extra 100k for security.

Multi stories will be manned, regularly patrolled and have closed circuit TV
Surface parks will be regularly patrolled (random 4 times daily estimated) and worst 3 for crime will also have CCTV.

Pricing structure will encourage short term parking in town centres.
Recover half costsRecover 1/2 costs

Introduce charges to recover half costs.

Prices will be graded to encourage short stay in town centres and long stay on car parks further out.

Some patrolling included, but mainly cash collection from machines.

This may deter some of the vandalism, although presence of machines with cash in may balance this out.
Free parking(SQ) Free parking

All car parks currently free.

4 multi-story plus 7 open car parks.

Currently problems with poor parking, vandalism, theft and recently a spate of muggings and rapes, with adverse publicit resulting for the council.

Input Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
Make self- financing0.00 10000
Recover half costs100.00 505070
Free parking200.00 0100100

Highway Maint

Options

Name
Minimum planned main
Expand planned maint
More conty patching
As proposed (SQ)
Reduce planned maint

Incremental Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
Minimum planned main3000.00 000
Expand planned maint400.00 100100100
More conty patching400.00 907590
As proposed (SQ)400.00 705070
Reduce planned maint300.00 302530

Highway Structures

Options

Name
Minimum Maint.
+ 40%
+ 30%
+ 20% (as proposed)
+ 10%

Incremental Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
Minimum Maint.1600.00 000
+ 40%200.00 100100100
+ 30%200.00 757590
+ 20% (as proposed)200.00 505080
+ 10%200.00 252545

Lighting-Energy

Options

Name
Remove altnate bulb
Time switches
As proposed (SQ)
Longer hours

Input Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
Remove altnate bulb700.00 000
Time switches800.00 405070
As proposed (SQ)890.00 80100100
Longer hours970.00 10010060

Lighting-Maint

Description: First 4 levels are exclusive options. 5th level "+ more freq clng" is a cumulative option to level 4.

Options

Name
Bulk changing
Negotiate contract
As proposed (SQ)
Faster response time
+ more freq clng

Input Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
Bulk changing550.00 000
Negotiate contract600.00 8010060
As proposed (SQ)660.00 8010060
Faster response time730.00 9010075
+ more freq clng800.00 100100100

Signs&Benches

Options

Name
Minimum service
SQ + 25%
As proposed (SQ)
SQ - 50%

Incremental Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
Minimum service20.00 000
SQ + 25%20.00 100100100
As proposed (SQ)40.00 708070
SQ - 50%20.00 302015

Horticultural Maint

Description: First 2 levels are exclusive.
Levels 3 is a cumulative option to level 2. Levels 4 & 5 are further exclusive options.

Options

Name
Minimum service
Reduce SQ by half
Add 0.5 FTE
As proposed (SQ)
Double maint

Input Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
Minimum service10.00 000
Reduce SQ by half25.00 0020
Add 0.5 FTE35.00 0037
As proposed (SQ)60.00 0067
Double maint100.00 100100100

Traffic Mgmt Maint

Options

Name
Less new crossings
No more guardrails
As proposed (SQ)
More xings & rails

Input Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
Less new crossings200.00 000
No more guardrails240.00 50045
As proposed (SQ)270.00 80080
More xings & rails290.00 100100100

Road Safety

Options

Name
Lower school promo
Expand cycl prof
As proposed (SQ)
Reduce SQ by 1 FTE
Higher publy budget

Incremental Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
Lower school promo120.00 000
Expand cycl prof15.00 100100100
As proposed (SQ)20.00 100100100
Reduce SQ by 1 FTE17.00 50090
Higher publy budget15.00 301050

Land Drainage

Options

Name
No hway minor works
Delay Water Act impl
As proposed (SQ)
Finish drainage stud

Input Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
No hway minor works150.00 000
Delay Water Act impl180.00 10040100
As proposed (SQ)200.00 10075100
Finish drainage stud240.00 100100100

Public Clocks

Options

Name
Main clocks only
As proposed (SQ)

Input Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
Main clocks only10.00 000
As proposed (SQ)15.00 100100100

Administration

Options

Name
Review Dep structure
Reduce overheads
As proposed (SQ)

Input Scores

 Costs Benefits
NameNETT SAFETYECONIMAGE
Review Dep structure300.00 000
Reduce overheads370.00 0055
As proposed (SQ)400.00 100100100

Proposed Package

   Costs  Benefits
   NETT SAFETYECONIMAGE
Crossing Patrols140 sites & wardens(2 of 5)320.00 47030
Xmas DecorationsNo decorations(1 of 4)0.00 000
Winter Salt etcCold spots only(2 of 5)300.00 2067
Car ParksMake self- financing(1 of 3)0.00 4200
Highway MaintAs proposed (SQ)(4 of 5)4200.00 766953
Highway Structures+ 20% (as proposed)(4 of 5)2200.00 312720
Lighting-EnergyAs proposed (SQ)(3 of 4)890.00 201524
Lighting-MaintAs proposed (SQ)(3 of 5)660.00 17157
Signs&BenchesAs proposed (SQ)(3 of 4)80.00 475
Horticultural MaintAs proposed (SQ)(4 of 5)60.00 002
Traffic Mgmt MaintAs proposed (SQ)(3 of 4)270.00 709
Road SafetyAs proposed (SQ)(3 of 5)155.00 12014
Land DrainageAs proposed (SQ)(3 of 4)200.00 463
Public ClocksAs proposed (SQ)(2 of 2)15.00 006
AdministrationAs proposed (SQ)(3 of 3)400.00 003
  Total:9750.00 609.58

Cheaper Package

   Costs Benefits
   NETT SAFETYECONIMAGE
Crossing Patrols155sites & 170warden(5 of 5)350.00 85053
Xmas DecorationsSkipton(3 of 4)80.00 0189
Winter Salt etcAs Proposed +gritter(5 of 5)480.00 683130
Car ParksFree parking(3 of 3)200.00 07647
Highway MaintMinimum planned main(1 of 5)3000.00 000
Highway StructuresMinimum Maint.(1 of 5)1600.00 000
Lighting-EnergyAs proposed (SQ)(3 of 4)890.00 201524
Lighting-MaintNegotiate contract(2 of 5)600.00 17157
Signs&BenchesSQ + 25%(2 of 4)40.00 243
Horticultural MaintMinimum service(1 of 5)10.00 000
Traffic Mgmt MaintMore xings & rails(4 of 4)290.00 8012
Road SafetyHigher publy budget(5 of 5)187.00 17024
Land DrainageDelay Water Act impl(2 of 4)180.00 433
Public ClocksAs proposed (SQ)(2 of 2)15.00 006
AdministrationReview Dep structure(1 of 3)300.00 000
  Total:8222.00 602.34

Better Package

   Costs Benefits
   NETT SAFETYECONIMAGE
Crossing Patrols155sites & 170warden(5 of 5)350.00 85053
Xmas DecorationsIlkley(4 of 4)120.00 02312
Winter Salt etcAs Proposed +gritter(5 of 5)480.00 683130
Car ParksFree parking(3 of 3)200.00 07647
Highway MaintAs proposed (SQ)(4 of 5)4200.00 766953
Highway Structures+ 30%(3 of 5)2000.00 242114
Lighting-EnergyAs proposed (SQ)(3 of 4)890.00 201524
Lighting-MaintNegotiate contract(2 of 5)600.00 17157
Signs&BenchesAs proposed (SQ)(3 of 4)80.00 475
Horticultural MaintMinimum service(1 of 5)10.00 000
Traffic Mgmt MaintMore xings & rails(4 of 4)290.00 8012
Road SafetyHigher publy budget(5 of 5)187.00 17024
Land DrainageAs proposed (SQ)(3 of 4)200.00 463
Public ClocksAs proposed (SQ)(2 of 2)15.00 006
AdministrationReview Dep structure(1 of 3)300.00 000
  Total:9922.00 876.59

Costs Criteria Details

NameDescriptionScale TypeFixed UpperFixed LowerUnitsCurrency Symbol
NETTCosts associated with each levelIdentity  Data

Benefits Criteria Details

NameDescriptionScale TypeFixed UpperFixed LowerUnits
SAFETY Relative  Data
ECON Relative  Data
IMAGE Relative  Data

Model Weightings

 
 Costs Benefits  
 NETT SAFETYECONIMAGE
Crossing Patrols- 1000100
Xmas Decorations- 03020
Winter Salt etc- 804050
Car Parks- 5010080
Highway Maint- 100100100
Highway Structures- 404040
Lighting-Energy- 302040
Lighting-Maint- 252020
Signs&Benches- 51010
Horticultural Maint- 005
Traffic Mgmt Maint- 10020
Road Safety- 20040
Land Drainage- 5105
Public Clocks- 0010
Administration- 005
Across Weights:100 1009070

Weights Descriptions

Costs
NETT
 
Benefits
SAFETY
ECON
IMAGE
 
Across Weights

Order of Priority

 Area Level CostsCum BenefitsCum
#01Crossing Patrols1100 sites & wardens260260 00
#02Xmas Decorations1No decorations0260 00
#03Winter Salt etc1Ice alerts only250510 00
#04Car Parks1Make self- financing0510 4242
#05Highway Maint1Minimum planned main30003510 042
#06Highway Structures1Minimum Maint.16005110 042
#07Lighting-Energy1Remove altnate bulb7005810 042
#08Lighting-Maint1Bulk changing5506360 042
#09Signs&Benches1Minimum service206380 042
#010Horticultural Maint1Minimum service106390 042
#011Traffic Mgmt Maint1Less new crossings2006590 042
#012Road Safety1Lower school promo1206710 042
#013Land Drainage1No hway minor works1506860 042
#014Public Clocks1Main clocks only106870 042
#015Administration1Review Dep structure3007170 042
#11Crossing Patrols4140sites & 180warden807250 131174
#214Public Clocks2As proposed (SQ)57255 6180
#312Road Safety2Expand cycl prof157270 13193
#48Lighting-Maint2Negotiate contract507320 39232
#51Crossing Patrols5155sites & 170warden107330 7239
#63Winter Salt etc2Cold spots only507380 34273
#712Road Safety3As proposed (SQ)207400 13286
#812Road Safety4Reduce SQ by 1 FTE177417 9295
#93Winter Salt etc5As Proposed +gritter1807597 94389
#104Car Parks2Recover half costs1007697 50439
#119Signs&Benches2SQ + 25%207717 9449
#1212Road Safety5Higher publy budget157732 5454
#132Xmas Decorations2Otley only407772 14468
#147Lighting-Energy2Time switches1007872 34502
#1513Land Drainage2Delay Water Act impl307902 10513
#162Xmas Decorations3Skipton407942 13526
#174Car Parks3Free parking1008042 31557
#187Lighting-Energy3As proposed (SQ)908132 25582
#1911Traffic Mgmt Maint2No more guardrails408172 10592
#2011Traffic Mgmt Maint3As proposed (SQ)308202 7598
#2111Traffic Mgmt Maint4More xings & rails208222 4602
#225Highway Maint2Expand planned maint4008622 80683
#232Xmas Decorations4Ilkley408662 7690
#249Signs&Benches3As proposed (SQ)408702 7697
#255Highway Maint3More conty patching4009102 68764
#266Highway Structures2+ 40%2009302 33798
#2713Land Drainage3As proposed (SQ)209322 3800
#286Highway Structures3+ 30%2009522 26827
#295Highway Maint4As proposed (SQ)4009922 50877
#306Highway Structures4+ 20% (as proposed)20010122 19896
#319Signs&Benches4SQ - 50%2010142 2897
#325Highway Maint5Reduce planned maint30010442 23920
#336Highway Structures5+ 10%20010642 10930
#3413Land Drainage4Finish drainage stud4010682 2932
#358Lighting-Maint5+ more freq clng20010882 9941
#3610Horticultural Maint3Add 0.5 FTE2510907 1942
#3710Horticultural Maint4As proposed (SQ)2510932 1943
#3815Administration3As proposed (SQ)10011032 3946
#3910Horticultural Maint5Double maint4011072 1947

Constraints

No constraints in force