Issue - meetings

The Director of Finance and Business Improvement presented the report providing an overview of the revenue budget and outturn for the second quarter of 2016/17, and highlighting financial matters which may have a material impact on the medium term financial strategy or the balance sheet.

It was explained that:

·  The Mote Park café had not generated its target revenue and had a projected shortfall of £125K. This was due to teething problems from which lessons had been learned.

·  The crematorium service was projected to come in at £100K over target due, amongst other things, to increased memorial purchases.

With regard to the overall forecast across the council it was stated that:

·  At the end of the first quarter an overspend of £250K was projected, due largely to an overspend on temporary accommodation. The overall overspend was now projected to reach nearly £500K by the end of the financial year.

·  Underspends within service areas and windfalls would be utilised to offset the overspend where possible.

·  The Council had a budget gap of £4M to find over a five year period. The Heritage, Culture and Leisure Committee oversaw services with a net budget of approximately £4.8M. The Council’s net budget was approximately £20M. Applied equally the committee would be looking to make savings of 20%.

During discussion the committee was informed that a public budget consultation had been undertaken, the results of which would inform proposals for savings. It was anticipated that the results and proposals would be presented to committee in January 2017.

RESOLVED: That the revenue position at the end of the second quarter, and the actions being taken or proposed to improve the position where significant variances have been identified, be noted.