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Issue - meetings
First Quarter Financial Update
Meeting: 15/09/2020 - Economic Regeneration and Leisure Committee (Item 149)
149 First Quarter Financial Update PDF 81 KB
Additional documents:
- Appendix 1 - Financial Update, item 149
PDF 124 KB View as HTML (149/2) 69 KB
- Appendix 2 - Performance Update, item 149
PDF 123 KB View as HTML (149/3) 69 KB
Minutes:
The Head of Finance introduced the report and informed the Committee that the forecast overspend had increased since publication, from just under £700k to just over £1million. This was to provide updated information, in line with the figures submitted by the Council each month to central government. The variance was greater than experienced in previous years due to the Coronavirus pandemic.
The overspend was attributed in the main to Maidstone Leisure Centre, the Museum, the Hazlitt Theatre and Mote Park Café. The Museum had a projected adverse variance of £127k, the Hazlitt’s adverse variance was £142k and the variance for Mote Park Café totalled £60k. A variance cost of £500k had been set aside for the Leisure Centre which was currently the subject of ongoing negotiations with Serco, as the Change of Law contract clause had been invoked which allowed the company to claim their losses from the Council.
The Head of Finance emphasised that the figures presented were based on the information available to the Council at the time and that these were still the subject of uncertainty. The Council was assessing the amount of loss that could be recovered through the government’s Sales, Fees and Charges Scheme. It was noted that any residual shortfall at the end of the financial year would be met from the general fund balance.
The capital expenditure for the first quarter was minimal due to the lockdown period, however the Mote Park Dam works had begun with the proposed Visitor Centre on hold.
The Policy and Information Manager informed the Committee that four of the five targeted indicators had not achieved the quarter one target. These indicators had been affected by the Covid-19 pandemic, lockdown period and social distancing requirements. The number of visitors to visitmaidstone.com reflected interest in Mote and Cobtree Parks and a newly created webpage on home food deliveries in the local area. The percentage of unemployed individuals in Maidstone in receipt of out-of-work benefits had risen significantly.
In response to questions, the Head of Finance confirmed that the Adventure Zone was run by Serco and was included in the Council’s negotiations. The Adventure Zone had now reopened. The Head of Regeneration and Economic Development confirmed that the planning permission received for the Mote Park Café and Estate Services Building would be tendered out to the market to discover the price level contractors would likely demand.
The Committee expressed their thanks to the Officers involved for their work.
RESOLVED: That
1. The Revenue position as at the end of Quarter 1 for 2020/21, including the actions being taken or proposed to improve the position, where significant variances have been identified, be noted;
2. The Capital position at the end of Quarter 1 be noted; and
3. The Performance position as at Quarter 1 for 2020/21, including the actions being taken or proposed to improve the position, where significant issues have been identified, be noted.