Agenda item

The Committee considered the Joint Report of the Corporate Director of Resources and Corporate Director of Regeneration and Local Services which set out details of the outturn budget position for the service areas within Regeneration and Local Services that fall within the remit of this committee. The report highlighted and explained any major variances in comparison with the budget based on the position to the end of Quarter 3. The Finance Manager, Regeneration and Local Services was in attendance to present the report and gave a presentation (for copy of report and presentation, see file of minutes).

Councillor Howell commented that he would prefer the data to be year to date rather than forecast. He then referred to the building and facilities management and sought clarification on the £390,000 underspend.

The Finance Manager indicated that the council made a profit on jobs recirculated, so any additional works would increase profit resulting in an underspend.

Councillor Howell then referred to Strategic Waste and sought further information on the potential penalty for high contamination levels.

The Finance Manager advised that recycling materials were sold to a private contractors which generated an income but if there were high levels of contamination this would reduce the income.

Councillor Patterson indicated that budget pressures could not afford overspends and asked why the MTFP savings were not achieved.

The Finance Manager responded that this related to rare problems with the fleet that were not programmed as anticipated and would be replaced next year.

Councillor Coult referred to the lost income from the Gala and if they were promoting for more usage.

The Finance Manager advised that the Head of Culture and Leisure had attended a meeting of the committee in January and had reassured members that steps were being taken to improve the Gala’s position and to be assured the service is working on it.

The Chairman advised that the Committee had received a presentation on the future of the Gala at a previous meeting and the committee had agreed this would be a future item for the Committee.

Councillor Hicks asked if the overspend in Culture and Sport was a result of the Council taking over Leisur4works, the Derwentside Trust for Sport and Arts. The Finance Manager indicated that staff had transferred to Durham County Council and there had been some issues with energy costs, but this would not be an issue going forward.

Resolved: That the Quarter 3 forecast outturn position on Revenue and Capital for 2018/19 be noted.