Agenda item

(Mrs. J. Wilson, Business Manager, attended in connection with this item.)

The Committee considered the undernoted report:

“1.     Key issues

The current performance in quarter three of the Parks and Leisure department shows a (2.9%) variance against the year to date budget; i.e.; an under spend of £496K.

The main issues are:

Income

Income for the department is down4% or £341k on budget.  Leisure Centres are down by 7% or £175k on the budget for fees and charges. Promotional activity especially around the new membership scheme is ongoing and campaigns have been underway from June.

Income from fees and charges at the Zoo is down 10% or £127k against budget and the income at the shop is also down £88k but this is offset by a reduction on expenditure on supplies by £78k.  The poor weather and the opening of other prestigious visitor centres have impacted on the Zoo however promotional activities are taking place to address this.

Income from fees and charges in Parks and Open Spaces are up by 8.5% largely in relation to events and pitch hire and the Crematorium which is up on budget by £116k due to additional slots and increase in price.

Utility Costs

Utility costs are currently £131k over spent: 11% in Leisure and 2% in Parks and Cemeteries.  The ongoing issues with the borehole at the Zoo are being resolved however the Zoo is currently connected to the mains which incur costs of £17k approx per month. The over spends in leisure relate to water and electricity costs being higher than budget and consumption increasing with the ongoing issues with the CHP units.

Grounds Maintenance

Grounds Maintenance expenditure is under spent against budget by £321k. £250k of this relates to the maintenance of playgrounds and £25k in relation to paths but both projects are on schedule to be completed by the end of the year. It is expected that £130k of expenditure for CCG will be used on preparation work for the overall scheme leaving £120k under spent in this financial year.

Supplies and Services

Supplies and Services within the department are under spent by 8% or £364k This expenditure relates to a number of programmes of work that are being developed and also programmes of work with external partners that are underway and are being monitored on a monthly basis. The corresponding under claimed grant income off sets some of this under expenditure in relation to a number of key programmes.  This also refers to the issue of the Zoo shop referred to above which has reduced its supplies for resale by £78k in response to poor sales.

General

Directorate support is largely on target however the ASB budget is likely to be under spent by £50k due to planning permission being required for a project and therefore the project has been delayed.

The department will continue to monitor the variance between actual and budgeted expenditure/income during the final quarter of the year.

The financial reporting pack contains more detail on both the overall council position and the financial performance in each of the Services within the Department.”

The Business Manager informed the Committee that the year-end expenditure forecast for the Department was for an anticipated £160,000 overspend.  She explained that this had arisen principally due to pressure on income which had been alluded to within the report and unanticipated maintenance issues that had arisen in respect of the borehole at the Belfast Zoo and the pool at the Avoniel Leisure Centre.  She assured the Members that steps would be taken to reduce spending against other budget headings to endeavour to reduce the level of overspend being forecast currently. 

The Committee noted the information which had been provided.