Agenda item

The Report of the Head of Finance.

The Finance Team Manager presented the report, outlining the expected deficit balances as at 31 March 2023 and highlighting the need to take action in order to ensure savings are made in 2022/23 of at least £17,000 in order that the Coalville Special Expenses budget and reserves would not be exceeded.

A member asked for clarification as to why there would be such a large budget deficit and officers responded that this had been raised in previous years and that the deficit position had been identified. However, it was noted that a savings plan had not been formulated when the budget was originally set and in order to maintain a balanced budget, the plan was for it to be addressed during this financial year. It was observed that annual expenditure had risen year on year but that income hadn’t, additionally the district council grant had also decreased, therefore it had been a combination of factors which had led to the deficit position. It was highlighted that some of the need to make spending reductions would be on planned preventative maintenance.

 A member requested a more detailed breakdown of finances and officers agreed to provide this.

Members expressed a wish to see events broken down into more detail, for example instead of including Picnic in the Park under the umbrella of “Coalville Events” it was felt that it would be beneficial for members comprehension to see that this would still be a planned event under its own right.

A member thanked officers for the report and for the explanation around it but suggested that members could have received more notice of spiralling costs. Officers responded that ultimately the authority has a set amount of money which expenditure must be kept within and suggested that the current spending would send the budget into deficit, highlighting the need to attain a more balanced financial position.

Officers emphasised the importance of looking at ways to make savings in the present, as by acting later on a potential saving, this could run the risk of this saving not being optimised, for example costs may have already been incurred which it would not be possible to claw back.

A member asserted that the working party did not have the responsibility of controlling the budget, however officers drew attention to the terms of reference in which it is stated that it is within the remit of the working party “to consider budget”.

A member suggested that there had been land within the special expenses area boundaries which had been rented out for less than the ‘going rate’, and suggested that by increasing rent, this would be a way to recoup some of the budget. Officers requested that the member provide specific details of the land in question so this could be investigated and followed up on.

Members asserted that they had not been provided with sufficient facts to come to a recommendation at this particular meeting and expressed reticence toward making decisions without being fully aware of the consequences of these decisions.

A member pointed out that there had been some positives, for example a £5,000 donation had been made to Coalville in Bloom and also money had been obtained in the form of grants from private companies.

The working group confirmed that whilst they would be satisfied to move and second the first recommendation, they wished to defer the decision on the second recommendation until further information had been provided.

It was moved by Councillor J Legrys, seconded by Councillor M Wyatt and

RESOLVED THAT

1. The 2022/23 Quarter 2 budget monitoring figures and forecasted outturn for 2022/23 be noted.
2. The decision to identify at least £17,000 of savings or deferral of planned maintenance to future financial years be deferred until the February meeting to allow officers time to provide the working party with a more detailed breakdown of the finances of the special expenses.