Efficiency Review in Wexford Local Authorities Adrian Doyle/Annette O’Neill DoS, Corporate Affairs/Head of Finance May,2012

Efficiency Agenda – Drivers/Context From 2008Economic Downturn July 20083% Requirement to reduce Pay Costs for 2008 Feb 2009Public Service Pension Levy Feb 20098% reduction in Consultancy/Professional Fees March % reduction in Travel & Subsistence Rate March 2009Moratorium on Recruitment May 2009Incentivised Scheme for early retirement July 2009Incentivised Career Break Scheme Jan % Pay Cut: Financial Emergency Measures 2010Efficiency Review Of Local Government Announced in Government Budget 2010  Report Published in July 2010  106 Recommendations in total

Wexford Local Authorities 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 Measures - 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 (Q1) Source: Annual Staff Returns Retirements Q = 29 YearNo. WTE Head Count No. Permanent Vacancies Q

TEMPORARY VACANCIES/FAMILY FRIENDLY INITIATIVES AT 31/03/2012 Incentivised Career Breaks 7 Other Career Breaks 8 Long Term Sick Leave11 Maternity Leave14 Other: Shorter Working Year/Carers Leave /Special Leave without Pay 5 Totalling approx 200 Weeks in 2012 Total 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 Redeployments o Planners to Planning Levy Collection o 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 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

Wexford Local Authorities – Monthly Comparative Analysis JanFebMarAprMayJunJulAugSepOctNovDecTotal 2012 To Date 124,42870,69156,78660,84987,83079,215479, ,478103,119121,76577,902105,278121,709102,058111,31585,47372,134108,37657,9851,285, ,589141,565135,92092,373108,380136,641104,313107,143120,85782,281127,511255,5381,804, ,693184,358169,879220,459171,375153,326176,602115,437118,07995,153152,108128,7001,910, ,629217,105194,566286,625208,782246,732304,951201,357233,890234,347279,277234,2992,936,561

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 CERTIFIED UNCERTIFIED TOTAL % TOTAL €2.44M2.34M2.20M1.72M

RATIONALISATION OF ANNUAL LEAVE LEAVE REDUCTION NO. OF STAFFNO. OF DAYS 1 DAY22 2 DAYS DAYS DAYS DAYS DAYS16 96 TOTAL82253 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 € Payroll49.1m45.6m41.1m40.2m Pensions 4.0m 4.1m 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 EXPENSES YEAR 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 12 th March 2009 Limits set for each employee from 2011 Regular Review and Reporting

ADVERTISING Revised Contract Arrangements Central/Combined Contract for Wexford Local Authorities Costs & Savings Generated…… €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 Telephones Comprehensive Review – Mobiles and Landlines Tendering Administrative efficiencies €54k Printing & Stationery Moved to Energy Efficient Managed Print System Paper Usage reduction initiatives/efficiencies introduced €100k Payroll Administration Harmonisation of Payroll to Countywide process Extension of Electronic Pay initiatives Move 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 Services Privatisation 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 PROGRESS Future 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 Year (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 Year (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 (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 %-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 %-13.82%-17.44%-22.65% Rates Movements € 15.3 € 16.6 € 17.2 € 18.2m €18.8m Annual Movement7.96%3.70%5.89%3.30% Movement since %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 You Questions?