Agenda item

            (Mrs J. Thompson, Director of Finance and Resources, attended in connection to this item.) 

            The Committee considered a report, which had been prepared by the Director of Finance and Resources, in relation to the establishment of the District Rate and the compilation of the Estimates of Revenue Expenditure for the year 2011/2012.  A copy of that section of the report, in so far as it applied specifically to the Parks and Leisure Committee, is set out hereunder:

“C:   Set The Cash Limits For Parks & Leisure Committee 2011/12

10.    A spending limit of £22,940,266 is recommended for the Parks & Leisure Committee in 2011/12 which represents an increase of £639,392 or 2.8%.  The main items of expenditure are outlined at Appendix 1 and a summary of some of the proposed priority actions for the Committee, which will be funded by the 2011/12 estimates, is included in Appendix 2.

         Parks & Cemetery Services

11.    The department has the responsibility for taking on the management and maintenance of Connswater Community Greenway. In year one of the project Parks & Leisure could face costs of up to £590k depending on the phasing of the project and the timescales associated with when the project goes live. From the ongoing improvement agenda within Parks operational efficiencies and changes to working practices have been identified which will allow approximately £100k of this increased cost to be absorbed by the service.

12.    The Zoo shop income is estimated to decrease on last year by £118k this reflects the performance of the shop to date this year more accurately.  Supplies for resale have also reduced by £60k to reflect the current turnover. Belfast Castle and Malone House have both reflected a loss of income from internal customers of approximately £30k and from external customers of £70k.

13.    The People in the Parks Initiative is a youth participation programme which is being developed as part of the antisocial behaviour pilot in our parks and involves projects in 10 of our parks requiring a £65k investment. This was agreed at the P&L Committee in August 2010.

14.    Increases in charges to the public of approximately inflation and 5% have been estimated for both the Zoo and the Cemeteries and Crematorium respectively and are reflected in the increased income figures.  These fees and charges will be submitted to the Parks and Leisure Committee in a separate report.

         Leisure Services

15.    Due to the partial closure of two leisure centres for essential maintenance to be programmed in 2011 there is a loss of income of approx £82k.  More detail will be presented to committee on this in due course.

16.    Increased rates and water charges have been offset by a reduction in the price of Electricity and Gas and savings generated through Combined Heat and power units.

17.    Work is in progress for the development and implementation of a Departmental Improvement Plan. Costs of £130,000 have been included to support the development of the Active Belfast and Open Spaces Strategy and the Parks & Leisure Improvement Plan which was outlined to the Parks and Leisure Committee during this year.

18.    Additional costs of £240,297 must be borne by the Department in respect of superannuation increased provision and increases in staff costs due to increments and assumed pay increases which have an estimated increase of £185,120. 

19.    The Department will make a contribution of £655k to the efficiency programme in 2011/12. Efficiency savings will be made in areas such as reviewing how we procure certain contracts, reviewing overtime and agency costs and fees and charges. Savings have also been achieved through the review of the operating structures of both Parks & Leisure and details of restructuring and VR processes have been presented to committee throughout the year.

APPENDIX 1

            The Director of Finance and Resources outlined the process governing the setting of the District Rate and the agreeing of the revenue estimates for 2011/2012.  She reported that the Strategic Policy and Resources Committee, at its meeting on 7th January, had agreed to a 2.5% increase in the District Rate and had agreed also that the cash limit for the Parks and Leisure Committee should be £22,940,266. 

            The Director of Parks and Leisure outlined the factors which had been taken into account in the preparation of the Departmental revenue estimates and highlighted the costs which had contributed to an increase in net expenditure from the previous year. 

            After discussion, the Committee agreed that its cash limit for the 2011/2012 financial year be £22,940,266 and approved the allocation of resources as set out within the foregoing appendix.