To present a financial update in respect of the income and expenditure so far in the year.
The Group had before it and NOTED a report * from the Director of Finance, Assets & Resources presenting a financial update in respect of the income and expenditure so far in the year.
The Chairman had raised questions in advance of the meeting as below:
There had been a notable overspend in leisure facilities. What were the reasons and what controls were being applied to bring it back to budget?
In relation to action to mitigate an overall predicted General Fund overspend of £181k, actions were as followed:
· Vacancy approvals were approved by Leadership Team on a case by case basis.
· Ongoing surplus asset disposal and reinvesting in income generating properties i.e. Coggan’s Well & 36 & 38 Fore Street
· SPV set up to generate income
· Applying for 100% Business rate pilot
· Increasing investment to £5m with CCLA from 01/02/17
· More proactive marketing of the Garden Waste scheme - now up to 9,500 customers.
Appendix A & B
Recreation and Sport 480% over budget. The reasons were given within the report but with such a significant overspend what was going to be done to ameliorate the situation and also learn lessons for the 2018/19 budget?
In relation to Recreation and Sport forecast overspend of £224k:
· A number of cost pressures were inescapable including an increase in utilities and recent NNDR rating increase amount to £41k
· The income budget for 17/18 was set in November 2016 with ‘full cost recovery’ in mind; in hindsight this was too challenging. The budget for 18/19 had been set to include any recurring pressures so the 18/19 base budget should be more realistic.
Exe Valley Leisure Centre extension overspend of £49k. What were the reasons and what were plans to recover? When planning this project was there any provision for contingency, and if not why not, given that this was a prudent precaution on all projects?
Exe Valley Leisure Centre capital project:
· During the build of the extension additional planned maintenance work originally scheduled for 19/20 was rolled forward to be undertaken at the same time to maximise efficiency, this was recommended and agreed at cabinet on 26/10/17.
· As with all major capital projects this project did have a contingency in the contract that was felt appropriate at the time it was let (in this case £60k).
Note: - Report * previously circulated and attached to Minutes.