To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.
Minutes:
Jane Fineman, Head of Finance, Procurement and Parking introduced the report that showed actual expenditure on services compared to the revised budget for the period ending 31 December 2020. It further included the forecast outturn position from the revised annual budget.
Discussion and responses to Members questions included the following:
- Actual expenditure to 31 December 2020 was £13.081m, £4.093m over budget.
- This consisted of a shortfall in income of £6.179m, less a saving in costs of £2.086m.
- The forecast outturn for the year was now £1.585m over budget. This was an improvement from quarter 2 of £631k.
- At quarter 2, income from sales, fees and charges was forecast to be £6.945m under budget. This had increased by £1.135m in quarter 3 to £8.08m.
- The main changes were a further £705k for off street parking, £336k for the Assembly Hall Theatre, £250k for the ice rink, £200k court income and £71k from on street parking.
- The Government compensation scheme to help cover these losses was estimated at £4.27m and this had been provided for in the forecast. This was an increase of £545k from quarter 2.
- TWBC was also awarded a grant of £500k from the Governments Cultural Recovery Grant Fund for the Assembly Hall Theatre. Of which £445k would be used for revenue.
- The additional income had been included in the quarter 3 forecast.
- Forecast cost savings were anticipated to be £1.46m for the year, an increase of £858k this quarter. The main contributor was £519k of savings from staffing and staff vacancies. An additional saving of £169k had been forecast for the Assembly Hall Theatre costs.
- There was a projected improvement in investment and bank interest of £140k.
- Approval of £59,665.00 in write offs had been requested.
- Ear marked reserves had already been approved to fund the balance of £2.216m. This transfer could now be reduced to £1.585m.
- As at 31 March 2020 the Council had £21.2m of usable reserves. £6.6m had been identified to be used to meet the budget deficit caused by Covid-19.
- The five year deficit forecast would be re-forecast after Full Council had agreed the budget.
RESOLVED - That the recommendations to Cabinet as set out in the report be supported.
Supporting documents: