1.      INTRODUCTION AND BACKGROUND

1.1     The Chairman has requested that this report be brought before the Committee to enable Members to review the budgets that have been set for 2018/19. The report sets out the budgets, provides some background information on how they were determined, some factors that need to be considered and sets out the options for future consideration of budgets.

2.        BUDGETS 2018/19

2.1     The budgets for the four operational activities of the Estate are set out at Appendix 1. A summary of the overall position is shown in the table below:

2.2     The budgets are set using a combination of factors, the primary ones being inflationary increases, known contract sums, calculation of staff and other recharges, and forecasts of income. They are included in the figures submitted to the Council as part of the Heritage, Culture and Leisure Committee budgets for consideration.  However those figures do not include any rechargeable costs or the entries that eliminate the share of Cobtree budgets that do not form part of the total Council budget, so the figures in the table above are just the operational budgets for the Estate.  A reconciliation between the Cobtree Manor Estate budgets and the Council budgets can be provided for Members.                                                                                                   

2.3     Members will be aware that the management of the café will shortly be passed to an external contractor. At the time of setting the budgets the timing of this was still not certain therefore the budgets shown at present reflect the current arrangements, and will need to be updated and amended when the contractor takes over the operation.      This will improve the current position as the Council will be receiving a guaranteed rental income from the contractor.                                                                                                    

2.4     Other budgets will be amended and updated following a review of the 2017/18 outturn figures that are shown elsewhere on this agenda. This will mean increasing the budget for grounds maintenance in the Manor Park, adding in budgets to reflect the situation with exempt VAT payments, and updating the budget for car park income following the decision to increase charges.                                                                                                                     

2.5     The figures for staff recharges will also need to be revised once the proposed Service Level Agreement with the Council is agreed.                                                                                         

2.6     The proposal to move the budgets and financial transactions of the Trust to a separate General Ledger system (Sage) is now in the early stages of being progressed, and Members will be updated on this in future reports.                                                                                                                  

2.7     It is proposed that an updated set of budget figures be brought to the next Committee meeting once the various factors set out above have been dealt with. These will also be presented as part of the more detailed financial position reports that will be presented to the Committee at regular intervals.                                                                                                                       

2.8      In previous years the budgets have not been brought to the Trust for consideration prior to their inclusion in the overall Council budget. However, in practical terms the Committee has agreed key elements of the budget such as the letting of contracts and car park income.                                                                                                  

2.9      It is proposed that in future the draft budgets are brought before the Committee at an early stage prior to their inclusion in the Council budgets. This would give Members the opportunity to review and comment on them.                                                         

3.        PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

4.       NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

4.1     Officers will continue to monitor the budgets and make adjustments where necessary.

5.       CROSS-CUTTING ISSUES AND IMPLICATIONS

6.        REPORT APPENDICES

The following documents are to be published with this report and form part of the report:

·         Appendix 1: Cobtree Manor Estate Budgets 2018/19

7.        BACKGROUND PAPERS

None.