Agenda item

(A report by Brendan Arnold, Interim Director of Finance and Joint Section 151 Officer.)

The Committee received a report from the Interim Finance Manager, providing an overview of the financial position of the Boston Town Area Committee (BTAC) as at 31 March 2025. The report, presented in conjunction with the supplementary agenda pack, outlined the final outturn for the 2024/25 financial year and the associated reserve position.

The Interim Finance Manager provided an update on the overall financial position for the financial year ended April 2025 and shared how each service area had contributed to the financial position. In quarter 4 of the financial year 2024/25, BTAC had a net surplus of £86,213. This represented a strong turnaround, especially when considered that earlier in the year, in Quarter 2, a shortfall of about £18,000 was faced.

BTAC had set a saving target of £36,455 and through focused efforts, particularly reducing recharges from Boston Borough Council in relation to grounds maintenance, assistant director work, accountancy and street cleaning, the Interim Finance Manager indicated that it had been possible to not only meet the target but to vastly exceed the target. He indicated that the outturn figures were preliminary and would undergo further review by Cabinet and audit. He also confirmed that in relation to the BTAC figures, although he did not anticipate it, any changes would be communicated to the committee at the next meeting, with the surplus being transferred to reserves.

In relation to reserves, at the beginning of the financial year, the reserves stood at £207,611. By the end of Quarter 4, this had increased to £293,825 with £14,801 earmarked for future expenses. The Interim Finance Manager confirmed that it meant that the outturn report demonstrated that the recommended minimum reserve of £70,000 had been met and exceeded.

In relation to the performance of service areas, the Interim Finance Manager provided further information.

A detailed breakdown of income and expenditure across all service areas was provided in Appendix A of the report. Key highlights included:

• Open Spaces and Play Areas: Underspend of £20,847, primarily due to reduced grounds maintenance costs and fewer repairs.
• Allotments. The costs were within budget and demonstrated strong financial management.
• Central Park: Underspend of £37,601, with significant savings in grounds maintenance and support services.
• Public Conveniences: Net underspend of nearly £10,000, despite increased employee costs due to agency cover. Savings were achieved in premises, transport, and support services.
• Events: Underspend of £18,762, largely due to reduced event delivery costs and increased income from space hire and revenue.
• Town Centre Maintenance: Underspend of £4,318, with savings in transport and supplies.
• Administration: Underspend of £32,623, reflecting reduced recharges and lower operational costs.

Member deliberation followed which included:

·       In relation to page 17 and the business rates refund referred to, the Assistant Director – Leisure and Local Services clarified that it was a refund from the 2022/23 financial year. Also, in relation to the same page, clarification was requested in relation to the almost doubling of the cost of cash collection services. The Interim Finance Manager agreed to provide subsequent information to the committee in response.

·       Clarification was sought in relation to a potential refund from Anglian Water in relation to sewage charges at Central Park. It was pointed out that this issue had been raised before and the Interim Finance Manager agreed to check the position and provide subsequent information to the committee.

·       In relation to the unspent development budget (allotments), it was clarified that it was £255 rather than £255,000 and there had been no development projects.

·       Further information was requested about the savings in grounds maintenance at Central Park. The Interim Finance Manager confirmed that the savings arose from an exercise that was completed to look at recharges and how they were allocated to BTAC. On analysis, it was found that BTAC was not being charged the correct amounts and this resulted in an adjustment and savings.

·       In relation to page 17, clarification was sought in relation to the additional costs per day/week arising from agency cover for staff absence. The Interim Finance Manager agreed to provide this information to the committee but in the meantime he indicated that the cost of the agencies would be considerably higher than permanent staff costs.

·       In relation to vehicles and the savings as against budget, the Interim Finance Manager confirmed that the savings related to the lower usage and cost of moving supplies between premises such as cleaning material and toiletries.

·       In relation to events at page 18 of the agenda, the Interim Finance Manager confirmed that he would provide subsequent information on the underspend as against budget. He agreed to confirm whether an allocation of £17,000 had been reallocated to the Boston Pride event.

·       Clarification was also provided about the circumstances in which the committee had approved the Boston Pride event, that it had benefitted from UK Shared Prosperity Funding and it was anticipated that not all the anticipated BTAC expenditure would be required. Deliberation also occurred about the circumstances in which a Boston music festival had been proposed as one of a number of suggestions. Full information would be provided on all events in the events report which would be submitted to the committee later in the year.

·       In relation to page 19, the Interim Finance Manager was asked to confirm how many employees were employed directly by BTAC. The Assistant Director – Leisure and Local Services confirmed there was one events assistant, two operatives and 2.5 toilet cleaners.

·       In relation to the savings made, members requested that it be recorded that Councillor Pierpoint, with the help of officers, had put a lot of hours and effort into the cost saving exercise to ensure that charges were being applied correctly.

·       Clarification was requested in relation to the length of time the recommended reserves figure of £70,000 figure had been in place and whether it should be reviewed. The Interim Finance Manager confirmed that the figure had been in place for at least three years. He confirmed that it was an issue he could take forward to the section 151 officer to see if there was any further recommendation to change that amount.

The Committee welcomed the improved financial position and acknowledged the efforts of officers in delivering efficiencies. It was noted that the surplus would provide a strong foundation for future investment in BTAC priorities.

Resolved:

1.     That the financial position as at 31 March 2025 and the outturn reserve position be noted; and

2.     That the transfer of the surplus of £86,213 to BTAC reserves be approved.