Efficiency Review in

Wexford Local Authorities

Adrian Doyle/Annette O’NeillDoS, Corporate Affairs/Head of Finance

May,2012

Efficiency Agenda – Drivers/ContextFrom 2008 Economic Downturn

July 2008 3% Requirement to reduce Pay Costs for 2008

Feb 2009 Public Service Pension Levy

Feb 2009 8% reduction in Consultancy/Professional Fees

March 2009 25% reduction in Travel & Subsistence Rate

March 2009 Moratorium on Recruitment

May 2009 Incentivised Scheme for early retirement

July 2009 Incentivised Career Break Scheme

Jan 2010 5-8% Pay Cut: Financial Emergency Measures

2010 Efficiency Review Of Local Government Announced in Government Budget 2010

Report Published in July 2010 106 Recommendations in total

Wexford Local AuthoritiesWexford Local AuthoritiesEfficiency Measures/Initiatives Efficiency Measures/Initiatives

Local Efficiency Review Group established Sept ‘10 Cross Directorate Representatives Weekly Meetings

Initially reviewed report recommendations Identified 42 of 106 as specifically locally based Reviewed 42 local items for potential efficiencies Also undertook Independent Review of additional efficiency

measures Priorities/Objectives

Cost Reduction/Efficiencies Sustainability Administrative efficiencies to cater for reduced staffing levels

Local Efficiency MeasuresLocal Efficiency Measures- Format of Presentation- Format of Presentation

1. Pay Costs Initiatives

2. Non Pay Costs Initiatives

3. Efficiencies Reviews–Ongoing/In Progress

4. Overall Financial Context

Local Efficiency Measures- Agenda

1. Pay Costs Initiatives

2. Non Pay Costs Initiatives

3. Efficiencies Reviews–Ongoing/In Progress

4. Overall Financial Context

STAFF NUMBERS 2008-2012 STAFF NUMBERS 2008-2012 (Q1)(Q1)

Source: Annual Staff ReturnsSource: Annual Staff Returns

Retirements Q1 2012 = 29

Year No.

WTE

Head Count

No. Permanent Vacancies

2008 925 1084 37

2009 865 1020 75

2010 847 1013 101

2011 819 978 144

2012 Q1

797 950 1620

200

400

600

800

1000

1200

2008 2009 2010 2011 2012Q1

WTE

H.Count

Vacancies

TEMPORARY VACANCIES/FAMILY FRIENDLY

INITIATIVES AT 31/03/2012Incentivised Career Breaks 7

Other Career Breaks 8

Long Term Sick Leave 11

Maternity Leave 14

Other: Shorter Working Year/Carers Leave /Special Leave without Pay

5

Totalling approx 200 Weeks in 2012Total Value €1.3m

REDEPLOYED/REASSIGNED STAFF

Refuse Collectors 18 Canteen Staff 3 Clerks of Works 2 Business Unit/NPPR/Household Charge 4 Planners to Biodiversity 1 Storekeeper to Civic Amenity Site 1 Total 29

Short Term Redeploymentso Planners to Planning Levy Collectiono Motor Tax Staff to Higher Education Grants & NPPR

OVERTIME LEVELS Completed a Full Countywide

Review of Activity Implemented Greater Control

through Changed Practices Better Use of Technology Categorisation of Overtime Weekly Monitoring of Costs

Year 2008 2009 2010 2011 2012

Annual Costs €3.372m €2.361m €2.227m €1.579m €1.3m(E)

Annual Savings €1.011m €0.134m €0.648m €0.2m(E)

Cumulative Savings €1.011m €1.145m €1.793m €2.0m (E)

Figures are based on Overtime Costs in all Wexford Local Authorities

01234

2008 2009 2010 2011 2012 Q1

Year

€m

Wexford Local Authorities – Monthly Comparative Analysis 2008 - 2012

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

2012 To Date

124,428 70,691 56,786 60,849 87,830 79,215 479,798

2011218,478 103,119 121,765 77,902 105,278 121,709 102,058 111,315 85,473 72,134 108,376 57,985 1,285,591

2010 391,589 141,565 135,920 92,373 108,380 136,641 104,313 107,143 120,857 82,281 127,511 255,538 1,804,110

2009 224,693 184,358 169,879 220,459 171,375 153,326 176,602 115,437 118,079 95,153 152,108 128,700 1,910,171

2008294,629 217,105 194,566 286,625 208,782 246,732 304,951 201,357 233,890 234,347 279,277 234,299 2,936,561

SICK PAY Greater Control through Central Notification of Absence More Structured Approach to Certification of illnesses Return to Work Interviewing and Reporting Increased Use of Independent Medicals

2009 – 7 Referrals to Independent Medicals 2011 – 22 Referrals to Independent Medicals

SICK PAY (PERCENTAGE OF PAYROLL)

YEAR 2008 2009 2010 2011

CERTIFIED 5.01 5.21 5.60 4.71

UNCERTIFIED 0.77 0.73 0.59 0.48

TOTAL % 5.78 5.94 6.19 5.19

TOTAL € 2.44M 2.34M 2.20M 1.72M

RATIONALISATION OF ANNUAL LEAVE

LEAVE REDUCTION

NO. OF STAFF

NO. OF DAYS

1 DAY 22 22

2 DAYS 14 28

3 DAYS 13 39

4 DAYS 17 68

5 DAYS 0 0

6 DAYS 16 96

TOTAL 82 253

Estimated Value: €100,000

Move to Electronic Leave Recording

Summary of Pay Costs Reductions/Efficiencies

Figures are inclusive of costs for all Wexford Local Authorities

2008€

2009€

2010€

2011€

Payroll 49.1m 45.6m 41.1m 40.2m

Pensions 4.0m 4.1m 4.5m 4.5m

Pension Levy

N/A 1.7m 2.0m 1.9m

Overtime 3.4m 2.4m 2.2m 1.6m

Sick Pay 2.4m 2.3m 2.2m 1.7m

Local Efficiency Measures- Agenda

1. Pay Costs Initiatives

2. Non Pay Costs Initiatives

3. Efficiencies Reviews–Ongoing/In Progress

4. Overall Financial Context

TRAVELLING EXPENSESYEAR 2008 2009 2010 2011

Travel Expenses€1,100,000 €730,000 €690,000 €650,000

Total Travel & Subs. €1,380,000 €920,000 €820,000 €770,000

Annual Savings €460,000 €100,000 €50,000

Cumulative Savings €460,000 €560,000 €610,000

NOTES: Travel Rates Reduced By 25% from 12th March 2009Limits set for each employee from 2011Regular Review and Reporting

ADVERTISING Revised Contract Arrangements Central/Combined Contract for Wexford Local

Authorities Costs & Savings Generated…….

2008 2009 2010 2011

€550,000 €450,000 €310,000 €230,000

Annual Savings €100,000 €140,000 €80,000

Cumulative Savings €100,000 €240,000 €320,000

MACHINERY & STORES

Reorganisation of Machinery Workshop € 60,000

Merger of Machinery Overseer/Storekeeper € 50,000

Purchase of Pickup Trucks (Hire Replacement) €100,000

Purchase of Patching Units € 40,000

Road Chip Deliveries to Depots €120,000

SUMMARY OF OTHER NON PAY COST INITIATIVES

Non Pay Activity Average Annual Savings

TelephonesComprehensive Review – Mobiles and LandlinesTenderingAdministrative efficiencies

€54k

Printing & StationeryMoved to Energy Efficient Managed Print SystemPaper Usage reduction initiatives/efficiencies introduced

€100k

Payroll Administration Harmonisation of Payroll to Countywide processExtension of Electronic Pay initiativesMove to Fortnightly Pay

€75k

SUMMARY OF OTHER NON PAY COST INITIATIVES………….contd

Non Pay Activity Average Annual Savings

Consultancies•Increased use in in-house expertise•Reassignment of staff

€100k

ICT Costs/Licences/Procurement•Contract Reviews•Review of Costs

€140k

Cleaning• Reorganisation of Working Hours and Staffing•Elimination of Cleaning Contracts

€30k

Canteen ServicesPrivatisation of Service €40k

Overall Annual Savings on Non Pay Costs Initiatives €1,720,000

Local Efficiency Measures- Agenda

1. Pay Costs Initiatives

2. Non Pay Costs Initiatives

3. Efficiencies Reviews–Ongoing/In Progress

4. Overall Financial Context

Local Efficiency Review – Ongoing Programme

Work Ongoing – Sustainability a key objective Building on Efficiencies already gained Sub Groups for specific efficiency focus Current Agenda

Attendance Management - Absenteeism etc Payroll – Overtime, Travel etc Energy Costs and efficiencies Procurement – Recurring Contracts, Purchasing Cards etc Housekeeping – Advertising, Postage, Telephones etc Income and Collections Pay Parking

WORKS IN PROGRESSFuture Initiatives (Already Commenced) Savings Target

Postage Discount €50,000

Public Lighting €50,000

Parking Machine Maintenance-Countywide €30,000

Continuing efforts on existing Initiatives

Energy

To be assessed

GPS (All Vehicles) – Regional Tender

Legal Services

Coroners Services

Further Overtime Savings

Extension of Managed Print Service

Extension of Purchasing Card Usage

Local Efficiency Measures- Agenda

1. Pay Costs Initiatives

2. Non Pay Costs Initiatives

3. Efficiencies Reviews–Ongoing/In Progress

4. Overall Financial Context

Operational Spend 2008 - 2012

80859095

100105110115120

2008 2009 2010 2011 2012 (B)

Year

€M

Year 2008 2009 2010 2011 2012

(Budget)

Revenue Expenditure

€118.7m €110.8m €113.5m €109.8m € 99.3m

Annual Movement -6.68% 2.49% -3.29% -9.52%

Cumulative Movement -6.68% -4.36% -7.50% -16.31%

Core Income Sources 2008 - 2012

5

10

15

20

25

2008 2009 2010 2011 2012 (B)Year

€M

LGF Road Grants Rates

Year 2008 2009 2010 2011 2012 (E)

LGF €23.4m €21.2m €20.2m €19.3m €18.1m

Road Grants €19.2m €14.1m €15.6m €12.5m €12.1m

Rates €15.3m €16.6m €17.2m €18.1m €18.8m

Core Income Sources 2008 – 2012% Movements

2008 2009 2010 2011 2012 (E)

Road Grant Movement €19.2m €14.1m €15.6m €12.5m €12.1m

Annual Movement -26.67% 10.44% -19.87% -3.20%

Movement since 2008 -26.67% -19.02% -34.90% -36.98%

LGF Movement (incl P/Levy €23.4m €21.2m €20.2m €19.3m €18.1m

Annual Movement -9.41% -4.87% -4.20% -6.22%

Movement since 2008   -9.41% -13.82% -17.44% -22.65%

Rates Movements €15.3 €16.6 €17.2 €18.2m €18.8m

Annual Movement 7.96% 3.70% 5.89% 3.30%

Movement since 2008   7.96% 11.95% 18.55% 22.88%

Conclusion Summary of Core Funding Movements 2012 V 2008

LGF (€5.3m) Road Grants (€7.1m) Rates €3.5m

Impact of Core Funding Movement (€8.9m)

Costs Efficiency Measures required to reduce funding gap Instrumental in maintaining 0% increase in Charges Ongoing efforts will assist in maintaining service levels Key Objective for identified efficiencies is Sustainability Administrative Efficiency Measures required to cater for

reduced staffing levels

Thank YouThank You

Questions?Questions?