Agenda item

This report covers this Committees financial position over the medium term (2024 – 2028) as at Period 10 (end of January).

Recommendation

That Members note & comment on the contents of the report.

The Finance Business Partner introduced the report.

Officers responded to questions raised by Members seeking clarification on the homelessness fund, specifically regarding the increase in nighttime lets. Officers explained that the Council owns 54 temporary accommodation units, and when these are filled, they must source additional temporary accommodations from external suppliers, referred to as nightly lets. The increase in income for the financial year is attributed to the higher number of nightly lets utilised. They further elaborated on the billing process for these accommodations, noting that while there are costs associated with nightly lets, the Council can reclaim the expenses billed to those in temporary accommodation. Members requested further clarification on how this process translates into income, to which officers offered to provide further information later.

Members raised concerns regarding the gas and water costs associated with Watersmeet Theatre and the playing fields. They inquired about the possibility of conducting business switching comparison to identify cheaper options. Members focused particularly on the financial implications and the future of the theatre. Officers provided historical context, noting that Watersmeet had a revenue cost to the council of circa. £60,000 in the 2023-24 financial year which was like 2015. In the years leading up to the covid pandemic Watersmeet costs to the council reduced significantly generating a net direct surplus for the two years prior to the pandemic. Despite now being back to pre-pandemic audience attendance figures of circa. 50,000 per year and the financial position continuing to improve year on year, the operating costs remain higher than pre-pandemic levels due mainly to increased utility costs and increases in staff wages. The financial position is expected to continue to improve going forward. Officers acknowledged the need to review utility costs and providers noting the costs are high nationally and internationally and expected to go up again but confirmed the council had recently switch water provider because of this review.

Members emphasised the importance of securing the future of the venue, facing a financial gap due to a tenant’s departure. The proposed forming a working group to explore commercialisation strategies and work with officers to address this shortfall. Officers responded by noting that a new tenant agreement is in place, which will fill that income gap going forward, while acknowledging the challenges in filling such a specialised space. Members highlighted the ongoing efforts and investments made by the team at Council and Watersmeet to ensure the theatre’s sustainability and success despite financial challenges. Members also emphasised the need for reviewing the venue’s financial losses, and officers advised that while Watersmeet is currently operating at a loss, it is in a relatively strong position compared to similar venues nationally. The discussion also touched on the implications of special expenses charged to residents, and the need for a more equitable financial approach. Overall, Members expressed a commitment to finding solutions for the venue’s financial challenges while acknowledging the hard work of those in its operations.

Members expressed a positive outlook on the reported increase in revenue from fines associated with fly tipping, and they inquired about how the Council can both increase revenue and reduce fly tipping simultaneously. Officers responded by explaining that the revenue comes from court cases and fixed penalty notices, with a report on fly tipping expected later in the year to provide more details.

The Committee noted the report.

RESOLVED:

That Members note & comment on the contents of the report.