Agenda item

The Committee considered the 2017/18 Revenue and Capital Budget Monitoring reports for the Housing, Regeneration, Planning and Leisure and Recreation Services for the period up to the 31^st December, 2017. It was noted that the revenue budget was forecasting a £407k overspend, the capital budget a £4,167k underspend, whilst the Housing Revenue Account was forecasting a £162k underspend.

The following issues were raised during consideration of the report:-

·        With regard to the projected £50k underspend on Homelessness, the Interim Head of Homes and Safer Communities advised there were a number of reasons attributable to that position. Firstly, the Department’s pro-active prevention arrangements had resulted in the provision having reduced significantly from the position 10 years previously where the budget returned a £0.5m deficit. Secondly, a £35k grant from the Welsh Government to support the provision of housing for the homeless had meant the Authority did not have to incur expenditure on the bond scheme. As a result of that funding, the budget would be re-profiled in the next financial year.

·        With regard to the £40k overspend at Pembrey Country Park, the Head of Leisure advised that agency staff costs had been incurred due to the introduction of new structures within the park and the need to employ agency staff on a temporary basis while the appropriate recruitment process was followed. The park was now fully staffed.

·        With regard to the operation of the Pembrey Country Park, clarification was sought on its future profit making projections. The Head of Leisure reminded the Committee that the park had increased its income by approximately £0.25m over recent years, mainly attributable to the operation of the caravan park. In order to maintain and increase that income generating potential, investment would need to be made at the park to improve and enhance existing facilities for example, new showers and café facilities. Accordingly, a masterplan had been developed, and approved, for the park and provision made within the Council’s capital programme to fund those improvements.

·        The Interim Head of Homes and Safer Communities confirmed that in relation to homelessness, whilst the Authority did not provide a dedicated overnight homeless shelter, it had a range of measures available to assist persons presenting themselves as homeless. Those included, being able to access emergency temporary accommodation and the operation of a bond scheme.

·        The Head of Leisure in response to a request for an explanation on the combined £274k net cost of services for the St Clears Leisure Centre (£177k) and the St Clears Craft Centre (£97k) advised that a significant contributing factor thereto related to the element of non-controllable costs. Those amounted to £82k and £50k respectively and included corporate costs and repayment of capital loans to fund improvements to the facilities. The department was acutely aware of the need to generate income/reduce costs for the facilities, and a meeting had recently been held with local members to discuss avenues to achieve that aim. However, it had to be recognised that whilst the leisure facilities in the larger urban towns were more cost effective, the rural facilities provided an important community role for example the craft centre included a library and police station.

·        In response for an explanation on the projected £17k income underachievement at the Llanelli Leisure Centre, the Head of Leisure advised that whilst the position was disappointing it should be viewed in context against a budgeted target income of £958k and in that regard it was not significant. One of the reasons for the projected underachievement could be due to competition within the Llanelli area from private leisure/fitness providers.

·        Comments were expressed on the subsidisation of facilities such as libraries and museums and it was acknowledged they may always require an element of sudsidy to ensure they remained opened to, and contributed to the cultural viability of the county.

The Head of Leisure in response to the issue of subsidies stated that the council in setting its pricing policies recognised the diverse economics of the county and had to ensure those policies did not prove to be a disincentive to the financially disadvantaged within society. However, whilst venues such as libraries, theatres and museums may require subsidy, officers continually explored alternative ways of income generation for example, the promotion of museums as wedding venues.

·        In response for clarification on the projected £469k overspend within the Development Management Section of the Planning Division, the Head of Planning advised that was attributable to a shortfall in income against projections based on the previous year’s income levels. Subsequent to the reports preparation at the end of December, the Sections income had increased by £124k with additional income anticipated over the coming months which would further reduce the deficit. Other factors impacting on income generation included the fact that across Wales the level of cost recovery for planning services was below 50% of the cost in delivering the service and representations were being made to the Welsh Government to increase that percentage. The Division was also examining the potential of introducing pre-application fees which, if approved, would assist in meeting income targets.

·        Reference was made to the issue of retrospective planning applications and to whether planning application fees could be increased to offset the increased costs in their processing, which normally arose as a result of enforcement action. The Head of Planning confirmed that representations had been made to the Welsh Government for local authorities to increase the fees. However, it did not accept there was a justifiable case for adopting that approach.

UNANIMOUSLY RESOLVED that the Revenue and Capital Budget Monitoring Report be received.