Agenda item

To receive the report of the Responsible Financial Officer (RFO). (To Follow)

The Committee received and considered the report of the RFO concerning the base revenue budget, draft estimates on budget parameters for 2023-24 and a revenue budget summary.

For the benefit of new Members, the RFO outlined the contents of the report and explained that although monitoring takes place throughout the year, this was the first report of the Committee budget setting cycle and a greater understanding of the estimates for 2024-25 would be known by the time of the Policy, Governance & Finance Committee meeting in November.

Members heard the Council had an ambitious programme of large projects and although these would be a strain on its finances, there were healthy earmarked reserves in place. Members should however be mindful of pressure on staff resources to deliver.

During this process, the Committee were told the RFO scrutinises budget lines and looks at the inflationary rises since the last budget, which currently stood at 6.7%. There were other external matters to be considered including public sector pay increases, potential energy increases due to world events and in the previous financial year, the cost-of-living crisis which resulted in a deficit revenue budget with funds taken from reserves; this was not sustainable indefinitely.

The RFO explained that the year-to-date totals in the report were showing less than half yearly amounts as they only covered five months expenditure and costs were slightly lighter than the previous year; it was prudent to slightly overestimate when setting the budget.

Regarding budget line anomalies, Members were advised water rates at the Leys Splash Park had been higher than anticipated due to ongoing repairs and mechanics of the system throughout the summer period; a planned refurbishment from earmarked reserve was proposed as a special revenue project beginning in 2024-25. They also heard that the figures regarding the Coffee Shed at The Leys would differ to those planned a year ago due to the Leys Masterplan and income in this area, including around electricity charges, would be defined by a new lease once works were completed.

Finally, the income from football letting was more than expected, this highlighted the growth of clubs and pressure on the Council’s pitches since the time of the last budget, set while exiting the Covid-19 pandemic. This had a knock-on effect of additional Council costs which had also gone up proportionally; a current subsidy figure, analysing the difference of an in-house ground’s maintenance team would be provided at a future date.

Recommended:

1.      That, the report be noted and,

2.      That, current subsidy figures for the provision of football pitches be calculated and,

3.      That, the draft revised base revenue budget for 2023/24 and the estimated base revenue budgets for 2024/25, as detailed be agreed.