Agenda item

A report by the Strategic Finance Manager

The Finance Manager presented the report as tabled advising that current projections indicated a surplus for the year of £2,838 with the year’s expenditure forecasted to be £730,026.

The main projected variances in the year were noted as follows:

The projected full year expenditure is forecasted to be £730,026; with a projected surplus of £2,838 which would transfer to reserves at year end.

The balance of the “other projects” budget was forecast at £51,514

There was an underspend within the BTAC Operatives Supplies and Services budget of £3,170, whereas Employee Overtime budget had overspent £837

The remaining £505 was made of small variances across all other areas

Referencing the BTAC reserve, members were advised that the opening 

balance as at 1 April 2022 was £302,530 (comprising £70,000 as the minimum to be held to allow for contingencies - as approved in the budget setting report - plus £51,514 for projects as listed in Appendix 1. The forecasted total closing balance on BTAC’s reserve is £169,320, at 31 March 2023.   After taking account of the S151 Officer’s recommendation of a minimum reserve of £70,000, the Funds available (not allocated) were £169,320 projected for the year end.

Committee deliberation followed which included:

With concern noted at the level of projected funds, clarification was provided that whilst the Funds available (not allocated) were projected to be £169,320 they had not taken into account all of the projects already outlined and others still pending, including a refurbishment of the play area within Central Park and the replacement of the Pirate Ship on Woodville Road, both of which would be expensive.   The Chairman also advised that a BID for funding from the Arts Council was being considered which, if successful would require a level of match funding.  BTAC had further agreed the extension to the locking of the Central Park Gates which would be a further charge to the projected funds.  The Lead Officer confirmed that there would be quarterly reporting of the funds which would change moving forward as projects were agreed and taken forward.

Referencing the recent arson attack on the Pirate Ship within the Woodville Road play area, a member questioned if the item had insurance which would assist in mitigating the replacement costs. The Lead Officer confirmed it was being looked into, the Council clearly had insurance but the threshold level was unknown. The Portfolio Holder added that he had tasked the relevant officers to address and establish the insurance position and, in response to a request that any claim back from the insurance be credited to BTAC as it would be they financing the replacement, he advised had noted the request.  There was full support of the committee for replacement of the equipment as soon as possible and the Lead Officer advised that costs and options would come back to the next meeting.  Reassurance was also offered that the Police were taking the incident very seriously and that CCTV had been scrutinising their data in depth.

Concern was raised at the potential loss of revenue through Council Tax due to the likelihood of the forecasted increases in the cost of living, with high increases in fuel and the knock on effects to everything else.  Whilst Council Tax was a legal requirement, the publics’ priorities moving forward were unknown with many potentially not be able to pay their Council Tax.  The Portfolio Holder agreed that the future could not be predicted but did state that during the pandemic the domestic collection rate for the last quarter of the last year had actually been 94% as against 94.23% the previous year.  The Finance Manager agreed that the figure could only be a projected figure during unprecedented times as it would be difficult to try to project the future of the economy not suggest how households would dispense their income.

Members noted the report.