Presentation to the Efficiency Review Group12th April 2011

Finance SPC Delegation:

•Cllr. Killian Forde, Chairperson, Finance SPC•Cllr. Ruairi McGinley•Cllr. Nial Ring•Mr. Tom Coffey, Dublin City Business Association•Kathy Quinn, Head of Finance, Dublin City Council

Meeting Agenda

Finance SPC – who we are Our Ambition for Dublin Mandate Actions taken so far

Budgets

Staff

Efficiency Future Measures for Dublin City Council Future Measures for Efficiency Review Group

Finance SPC – Who we are

15 Members

10 elected representatives – Cross Party and City

5 sectoral members – IBEC, Dublin City Business Assoc., Dublin Chamber of Commerce,

ICTU representative and Third Level Sector

Finance SPC – Our Work

Funding Dublin report – Dublin as the economic, cultural hub attracting investment and workers.

Review of the Commercial Rate Base of Dublin City – maintain and strengthen Dublin’s trading base and Dublin’s capacity to generate employment across the skills range.

Commission on Taxation – strengthen the funding basis for Dublin City Council to give a viable funding basis into the future

Workplace Skills Review - consider how the long term workplace skills needs of staff who currently are low skilled, can be met effectively.

Our Ambition for Dublin

Dublin the Capital City Our vision for Dublin City is a world leading City to live in, work

in and visit. Dublin is a focus point within Ireland, for example:

Tourism – 32% of total tourism (2009)

Gross Value Added – 39% of economic output (2009) Qualified employment market – over half possessing a third

level qualification

IFSC – 22,000 employed in Dublin Employment base – 21% of all jobs nationally in Dublin City

High levels of FDI (5th most attractive city E&Y 2009)

Our Ambition for Dublin continued

International City for Ireland Enabled for business, with ease of movement

whether physically or virtually Attractive functioning city, tolerant and diverse Socially Inclusive Dublin is the economic hub of the state and has

the greatest potential to lift the economy towards greater growth.

Economic Activity

Our Ambition for Dublin

Border, 7.8%

Midland, 4.0%

West, 6.9%

Dublin, 39.1%

Mid-East, 8.9%

Mid-West, 7.2%

South-East, 8.1%

South-West, 18.0%

2007 -GVA at Factor Cost across regions - Total GVA (%)

Mandate Strength of local government principles. Mandate for the City extends from rate payers to local authority

tenants to library users.

Our FrameworkRates Contract

Rates are the core funding element and function based on businesses gaining a trading environment which facilitates economic activity. Dublin City Council must continue to provide a functioning business environment.

Social Contract The City must develop and widen lifestyle opportunities and

choices – from cultural to leisure to recreational. The business aspect of the City must be balanced with the quality and diversity of life aspects. Dublin City Council must continue to provide a varied diverse offering.

Actions Taken so Far - Budgets

Contingency measures to the value of €30m (€14m pay and €16m non pay) agreed and implemented in 2009 with minimal impact for service users

Real Reduction in value of Annual Rate on Valuation in 2010 and 2011 of 4.8%

Applying the Polluter Pays Principle in the retention of the waiver of the standing charge for refuse collection for relevant households

Income reduction of €97m With effect from December 2008, no vacant post filled (other than in an

exceptional cases), where a vacant post filled by another employee, payment of “acting” allowance ceased.

Overtime spend was cut back initially by 50 per cent. The reduction has been from €27.6m in 2008 to a budgeted figure of €10.7m in 2011.

Actions Taken so Far – Budgets contd.

Analysis of Income Sources

2008 2009 2010 2011AFS Outturn AFS Outturn AFS Outturn Budgeted

Revenue Income

Local Government Fund 104,095,740 94,748,613 83,682,275 74,892,972

General Government Grants 117,278,043 136,641,282 149,247,147 148,450,931

Local Authority Contributions 97,401,768 99,874,547 92,512,364 90,470,796

Goods & Services 300,031,956 268,797,445 246,816,004 232,028,362

Commerical Rates 304,553,511 316,107,522 282,021,994 280,466,742

Total Revenue Income 923,361,018 916,169,409 854,279,784 826,309,803

Actions Taken so Far – Budgets contd.Sources of Funding

Local Government Fund (LGF) - The LGF has been reduced from €104.1M in 2008 to €73.7M in 2011. The 2011 calculation nets off the 35% payroll deduction from the actual allocation. In real terms, the net contribution has reduced by €30.4M (29%) since 2008.

Goods and Services - Income has reduced from €300M in 2008 to an estimated €232M in 2011, a reduction of €68M (23%). Reductions have occurred in parking charges, waste water charges, planning fees, domestic and commercial refuse, fire charges, recreation charges and licence & repayable works. The introduction of Non National Private Residence charges has been beneficial.

Commercial Rates - The income has reduced from €316.1M in 2009 to an estimated €280.5M in 2011, a reduction of €35.6M (11%).

Actions Taken so Far – Budgets contd.Reduction in costs

Cost to Dublin City of failure to apply Local Funding Rate of 73% to Pay Reduction retention - €3.1m in 2010 and 2011

2008 2011 Reduction (€m)

%

Wages 209.4 175.9 33.5 16

Salaries (2009) 150.9 135.2 15.7 10

Non Pay 466.7 402.1 64.6 14

Pension Related Deduction

Total €m @73% €m

2009 16.1 11.75

2010 19.0 13.87

2011 (Budget) 17.5 12.78

Total Loss 38.4

Impacts on Staffing Levels

Separate report presented on impact of Capital City on services and the regional/national and agency services provided by DCC

Total Staffing DCC Function Other Bodies

Regional / National 1470.35 800.28 670.07

Agency 225.09 225.09

Total 1695.44 800.28 895.16

Staffing Levels

Core Staff WTE DEC '08 WTE Dec '09 WTE Dec '10 Nett Loss% Reduction

Managerial 53 50 45.8 7.2 13.58 Clerical/Administrative 2,252.00 1,946.90 1,923.80 328.2 14.57 Professional/Technical 544.6 460.4 438 106.6 19.57 Operational + Fire Brigade Personnel 3,945.10 3,866.35 3,725.60 219.5 5.56

Total Core Staff 6,794.70 6,323.65 6,133.20 661.50 9.74 Other StaffContract posts 81.5 72.1 65.2 16.3 20.00 Site Supervisory Contract Posts 3 3 100.00 Temp/Seasonal 52.3 33 43 9.3 17.78 Total Other Staff 136.8 105.1 108.2 28.6 20.91 OVERALL TOTAL 6,931.50 6,428.75 6,241.40 690.10 9.96 Retained Fire Service Staff 29 27 26 3 10.34 Non DoEH&LG Staff 8 6 6 2 25.00 *There are currently 56.9 staff on Incentivised Career Break, who are scheduled to return in 2012

Managerial Grades: Includes all grades above Senior Executive level plus Analogous GradesClerical Administrative Grades: Includes Grade 3, 4, 5, 6, 7 and Analogous plus Senior Executive Officer and Analogous Grades (see explanation

below)

Professional Technical Grades: Includes Assistant, Executive, Senior Executive and Senior Professional Grades plus Analogous Grades

Operational Grades: Includes all General Operative grades plus Craft GradesFire Brigade Grades: Includes Fire Fighter, Sub Officer and Station OfficerNon DoEH&LG: Includes City Coroner, Senior Pathology Technician and Asst CD Officer

Actions Taken so Far – Staff

Critical Replacements To Date: Approvals New to Organisation

30 Firefighters 30

15 Staff in Sports and Leisure 15

15 Staff for new Leisure Centres 15

4 Rate Collectors 0

8 Executive Housing Officers 0

1 City Arts Officer 0

Actions Taken so Far – Staff contd

Staff Reductions

Qtr4 2010 % since08

Actual Red since Moratorium commenced

ECF 2011 compared to Qtr 4 2010 2011 ECF

Nos at end 2014 as per 4 Year Plan

Civil Service 36,437.10 7.32 2,691.93 -761.90 37,199 34,600.00Defence 10,312.60 8.45 856.40 -187.40 10,500 10300Education 93,827.09 0.88 1,053.35 377.09 93,450 95750Health

107,972.24 2.75 3,797.73 2,672.24 105,300 100800Justice 14,613.98 6.87 1,050.02 767.98 13,846 13250Gardai 14,386.50 6.49 968.50 886.50 13,500 13000Local Authorities 30,703.04 12.30 3,475.82 -46.96 30,750 30000NCSA 11,991.57 8.18 989.16 439.57 11,552 10000Total

305,857.62 4.43 13,914.41 3,260.62 302,597.00 294,700.00

Highest percentage of staff reductions in local government sector

Dublin City Council at 10% above other sectoral averages

Local Government likely to reach 2014 target at end of 2012

Actions Taken so Far – Staff

Efficiency Measures

Corporate Performance management

development Introduction of customer services

centre Customer relationship management Implementation of oracle financial

system Enhanced procurement function Improved attendance management

performance Enhanced debt management

procedures and monitoring Review and reduction in overtime Introduction of on-line payments

options Roll out of Workforce Planning

Departmental

Motor Tax online Review of the operation of the ambulance service Waste collection route rationalisation Introduction green bin / brown bin service Move to 7 day street cleaning service Implementation of non-domestic water metering Review of housing maintenance services Re-configuration of Homeless services – Dublin

Region Establishment of Transport 21 office Review of the operation of after hours –

emergency response Introduction of asset based community

development Transportation asset management project Introduction of Parking Tag Rationalisation of the operation of drainage

services

Actions Taken so Far – Efficiency

Reminder re Shared Services

Homeless Service QBN Project Office Transport 21

Public Lighting Air Quality & Noise Traffic Services

Drinking Water• Treatment• Bulk Distribution• Monitoring

National Transfrontier Waste Shipment

ERBD Implementation

Fleet Management Central Lab Fire & Rescue

Motor Tax DIT & VEC Pensions Valuation

Codema Prison Library Service

Actions Taken so Far – Efficiency

Our Performance Rate Collection 4% above national average Fire – Quickest mobilisation time from full time stations Attendance Management – consistent, effective approach Motor Tax – over 60% on line Procurement – Many initiatives

Continue our support for the transformation process already commenced Reduction in staff numbers of 700 since the end of 2008

Review of key services and work practices City Council must, has and will adapt to the economy of the future Workforce planning – alignment of service need with resource availability

Shared Services Under Review Water Services Legal Services Internal Audit Franchise Support Services:

- HR

- Finance

- ICT

- Corporate

Changes Now

Future Measures for Dublin City Council

Staffing Plan and our Framework

Dublin’s future includes commitment to both the Rates Contract and the Social Contract

Our Staffing Plan for the City’s future must acknowledge the necessity to meet these obligations

Future Measures for Dublin City Council

Implement Commission on Taxation recommendations by removing exempt status of government buildings – would provide a recurring €27m annual injection to businesses in Dublin City.

Introduce continuous motor vehicle registration to increase funding for the Local Government Fund.

Review of services between adjacent local authorities Govt to take early decisions on certain national policy issues

Key Actions to be taken

Future Measures for the Efficiency Review Group

Summary and Conclusion

DCC Work Force Plan

Elected Members wish to provide efficient City services Examination of staff retirements Identification of critical replacements Have regard to 2009 exits Two scenarios prepared – Minimum and Maximum

Conclusion

Work Force Plan best approach Can implement in co-operation with Elected Members, Unions

and other interests Will allow DCC deliver minimum services befitting Capital City