Agenda item

·        2011/2012 Revenue and Capital Budgets.

The Head of Finance, HR and Business Support referred Members to the report setting out the proposed 2011/12 Budget for the Central Durham Crematorium (for copy, see file of minutes).

Members were reminded that the Budget as set out in the report was based on the Fees and Charges as agreed at the previous item and was developed in conjunction with the Superintendent and Registrar.  It was noted that factors taken into account included the major works to be carried out at the Crematorium, the potential impact of the Wear Valley Crematorium and an increase in the number of cremations coming from the east of the County, including Hartlepool and Sunderland.

Councillors learned that there were reductions in the Employees budget after taking into account the Coalition Government’s decision to freeze the pay award for Local Government staff and reductions in the general and pandemic operator training budget.

Members also noted that the Premises budget would increase by approximately the same amount as the reduction of the Employee budget and this was to take into account an estimated increase in the National Non-Domestic Rate (NNDR) charges, a provision for footpath and road repairs and costs associated with the burglar / fire alarm.

The Joint Committee were informed that the budget for Supplies and Services had been reduced with a number of “one-off” costs from the previous year having been removed including replacement of the organ and the 50 Years Anniversary Celebrations.  The Head of Finance, HR and Business Support explained that the Public Book of Remembrance Visual Reference System and replacement computer budget was removed due to delays, though it may be included in the budget the following year if required.  Councillors noted that also expenditure on Medical Referees; Masterplan and vase blocks were budgeted to be less than the current year, due to the anticipated lower number of cremations for 2011/12.  Members were reminded that as a response to the 2009/10 External Audit recommendation relating to inefficiencies in the maintenance of the accounts an amount had been set aside for the procurement, set up and training for a dedicated Financial Management System – SAGE. 

The Head of Finance, HR and Business Support explained that, in relation to Agency and Contracted Services, there would be an overall reduction in comparison to the previous year with reductions in brochure printing, delays to the implementation of an on-line reference system and removal of the amount set aside for feasibility studies associated with the major works.  Members noted that there was an increase in the External Audit fees, in line with the projected outturn for 2010/11.  The Joint Committee learned that the amount relating to the loan repayments for the capital scheme of cremator replacement works was included in the 2011/12 budget, as approved at the Special Meeting of the Joint Committee held in December.

Councillors were reminded that the budget was prudent, and that if the level of cremations was maintained, the 2011/12 revenue would be very good.  The Head of Finance, HR and Business Support noted that even including the contribution to the major works from the reserves; the Crematorium had reserves of approximately £785,000 which was very good for an organisation of the size of the Durham Crematorium.

The Clerk to Spennymoor Town Council asked whether the replacement organ had been purchased and the Superintendent and Registrar confirmed that this was the case.

Resolved:

(a)         That the Members of the Central Durham Crematorium Joint                                         Committee note and approve the budget proposals contained within              the report.

(b)         That the Members of the Central Durham Crematorium Joint                                         Committee note the forecast level of reserves and balances at 31                               March 2012.