In Cllr Rosenau Budget Recommendation AR2 page 14, she proposes an increased revenue savings in Asset Rationalisation from the current Budget of £3.2 million, with predicted savings in 2014/15 of £150,000 and 2015/16 of £450,000.
Cllr Rosenau has replied (see below) to show she has identified £450,000 to cover the additional costs of new Civic, only another £6.4 million to find, I have of course wrote back asking again where the above funds will come from.
Dear Mr Norris,
£9.3m is the full costs including finance charges for buildings A&B of £6.8m plus £2.5m operational costs of other retained buildings, excluding historic financing costs. Clearly the latter were already provided for within current budgets albeit with some improvement works to Tunstall/Longton and modest works in Fenton and Burslem the costs are slightly higher than is now.
The Cabinet report assumed that in a full year we could reduce costs/increase income by £4.9m. We still have a target to balance this off to the additional costs of £6.8m but expect to achieve this when Spode etc. are sold.
In the meantime– we had only been assuming £200k of the £4.9m could be achieved next year and £1.9m in 2015/16. This is over cautious – if we do close some buildings sooner rather than later this alone will increase our savings. There are also other non-office buildings that we are disposing of too – the full year saving from what has gone to auction this year to date is over £150k hence, the additional target of £150k from the budget proposal AR2 next year is realistic and the £450k in 2015/16 should be achievable too.
I hope this addresses your query.