Parks committee of Stourport-On-Severn Town Council

Meeting on 18 January 2022

Report of the Treasurer on the Budget 2022-23

1. INTRODUCTION

The financial background to this report is that the Council’s current financial position is sound. However, the factors significantly affecting the Council’s overall financial position include:

  • the ‘localism’ agenda under which the Town Council has already taken over the full annual costs of running the Paddling Pool and the Community Centre and, at the instigation of Wyre Forest District Council, is in the process of taking over a number of other hitherto-WFDC services that are provided within Stourport’s boundaries – the latest position will be explained at your meeting;
  • the level of ‘balances’ that the Council should aim to retain to deal with unbudgeted in-year spending or loss of income.

More detail on the background to the budget will be provided to the meeting of Finance Committee on 25th January 2022.

The purpose of this report is to help the Committee to formulate budget recommendations to the Finance Committee and to the Council.  The Parks Committee section of the Council’s draft budget is attached to this report. Members will note that it provides details as follows:

  • Actual income and expenditure to 31st December 2021
  • Revised estimates for 2021/22; and
  • Draft budget for 2022/23.

These are considered in the paragraphs below.

2. ACTUAL INCOME AND EXPENDITURE TO 31ST DECEMBER 2021

Accepted good accounting practice requires that budgetary control be carried out during each financial year.  An important element of that process is to compare actual income and expenditure for the 9 months ended 31st December 2021 with the approved budget for the current financial year 2021/22 to identify any significant additional costs or savings and take any appropriate action.  However, as variances have been included in the full year revised estimate for 2021/22, and are dealt with in the next paragraph, there is nothing else to bring to Members attention.

3. REVISED ESTIMATE 2021/22 AND DRAFT BUDGET 2022/23

The revised estimate for 2021/22 is detailed in the attached paper and is £33,479 below the original budget (£161,831 compared with £195,310).  This variance is almost all accounted for by the £31,000 budget established for running the Riverside toilets not being required in 2021/22 (see also paragraph 4 below).

4. DRAFT BUDGET 2022/23

The draft budget is detailed in the attached annex and shows total net expenditure for 2022/23 as £217,634.  The figures are based on 1.75% pay inflation for 2021/22 and for 2022/23 and minimal price inflation. In relation to income it is suggested that:

  • cemetery fees – ‘headline’ fees were not increased in 2021 but were increased from £720 to £800 with effect from 1st April 2020 and other cemetery fees by around the same percentage – it is suggested that an increase to £850 from 1st April 2022 may be appropriate;
  • rents for allotments were increased every two years and were increased from £44 to £46 (large plots) in 2021 and it is suggested that there be no increase from 1st April 2022.

Members will be aware of the transfer of responsibility for looking after the Riverside toilets from Wyre Forest District Council to the Town Council under the localism strategy.  This is agreed in principle but has been delayed and is now estimated, making some allowance for legal work, to take full effect from April 2022. The budget of £31,000 for 2021/22 will not be spent but the latest assessment is that in a full year around £36,000 will be required and this sum is included in the draft budget for 2022/23.

The Town Council took on full operational responsibility for the paddling pool for the first time in 2021 but, due to the pandemic, the pool was only open for a few weeks. It was very successful but also quite costly partly due to the requirement for daily inspections. The draft budget for 2022/23, therefore, includes an increase from £14,000 in 2021/22 to £32,000 in 2022/23. The Town Clerk will update the Committee in relation to this but, at time of writing, it is unclear how many weeks of opening can be paid for with a £32,000 budget. 

Members are invited to put forward other ‘bids’ for service improvements or savings which the Committee may decide to recommend to Finance Committee, and to the Council, for inclusion in the Council’s final 2022/23 budget.

5. VEHICLES, MOWERS, BUILDINGS, EQUIPMENT AND COMPUTING PROGRAMME

The works van was replaced during 2021/22 using the Vehicles Fund which has been built up by annual contributions. The usual contribution to the Fund is included in the budget but there are no plans currently to be drawing on the Fund for the benefit of the Parks Committee in 2022/23. 

6. RECOMMENDATIONS

            It is RECOMMENDED that:

  1. Actual income and expenditure for the 9 months ended 31st December 2021 be noted; and
  2. The Committee approve, for referral to the Finance Committee and to the Council:
    • the Parks Committee section of the revised estimate for 2021/22 and the draft budget for 2022/23;
    • its decisions in relation to cemetery fees and allotment rents from 1st April 2022;
    • its recommendations in relation to service options.

This Report has been prepared by Graham Shaw, Treasurer who will be pleased to respond to any questions arising.

Budget for Parks Committee (excel document)