Agenda item

The Committee considered the report of the Neighbourhood Services Management Team which set out details of the forecast outturn as at Quarter 3 for 2015/16 and highlighted variances against revenue and capital budgets for Neighbourhood Services and the Finance Manager, Neighbourhoods, gave a presentation (for copies see file of minutes).

Councillor Clark referred to the savings made by leisure contracts with 3rd party providers and raised concerns that the standard of leisure facilities was not going to be reduced.

The Finance Manager responded that the 3rd party provider was for two or three facilities and it was up to the leisure contractor to ensure that the facilities were up to the standard of the contract. The main savings that had been achieved in this area was through rationalising facilities ran by Leisureworks at Consett where a single centre had replaced two previous buildings and formed part of the Consett Academy/Consett Leisure Centre complex.

Mr T Bolton referred to the £1m transferred from the Capital Expenditure Earmarked Reserve in relation to additional costs for Thornley Waste Transfer Station and sought clarification if the consultants had not identified the issues.

The Finance Manager responded that it was a much bigger scheme than anticipated and was not a failing of the consultants.

Councillor Freeman sought clarification on the additional development expenditure for the Gala and Town Hall.

The Finance Manager responded that the Gala were protecting their position so were developing the cinema and were engaging with Picturehouse. The costs for the Town Hall were in relation to works anticipated to improve the facilities and increase usage.

Councillor Clare referred to the £0.9 m overachievement in Direct Services and commented that a parking bay in his ward that had no services cost £27,000, and asked if the prices had been brought down.

The Finance Manager responded that the prices had been reduced but parking bay construction was within the remit of Highways. Both Highways and Direct Services were reviewing their prices.

Councillor Armstrong commented that the monies were recycled back into the council.

Resolved: That the report be noted.