PAPER D
RYDE
TOWN COUNCIL
Report To:
Full Council - 2 November 2020
Report From:
Gareth Hughes, Responsible Financial Officer.
Lisa Dyer - Clerk
FINANCIAL FORECAST TO MARCH 2022
1.
Purpose
To provide an updated budget for the current financial year and a budget forecast
for the 2021-22 financial year, having regard to decisions taken since
the 2020-21 budget setting process.
2.
Background
2.1 This report is brought to Full Council without the consideration of Finance
Committee due to the urgency of providing an update on the Councils financial
position.
3.
Financial Forecasts
3.1 Appendix A contains in column one the original budget for the current year, but
reformatted into a Committee based structure. Column 2 shows a revised estimate
for the current year and Column 4 presents a forecast for the 2021-
2022 financial
year (both as presented to Finance Committee on 29 September).
3.2. Appendix A includes for the following factors and assumptions :
a) Full year effects of the organisational restructuring undertaken at the end of the
2019-20 financial year.
b) Inclusion of all recent staffing decisions by the Personnel Committee.
Having regard to the timing of new appopintments it is recommended that any
underspend in the salary budget for the current year is carried forward to the
salary budget for 2021-22.
c) The pay award for 1st April 2021 has been assumed to be for 2%. The Salary
budget for next year, at this stage, includes this and an estimate for increments
d) Grants & Donations for 2021-22 are assumed to remain at the original levels set
for the current financial year.
e) The Classic Car Event budget, unspent this year, has been carried forward to
increase the provision for the 2021 event.
D - 1
f) Inflation on goods and services has been provided for at 3%.
g) Any non capital expenditure on St Thomas Church is assumed to be
funded from the Network Ryde budget.
h) Ryde Harbour figures are as per the agreed Business Plan.
i) New budgets have been introduced for mileage allowances, HR service,Legal and
survey costs relating to acquisitions,.and costs related to Covid 19.
j) At this stage no revenue budget provision has been made for any
loan charges or other costs that would arise from any borrowing that may be
required for the acquisition of the Town Hall, Vectis Hall or any other new
projects such as deckchair provision.
4. Forecast and other potential 2020-21 financial year savings
Having regard to updated expenditure, financial pressures on budgets and the impact
of COVID -19 on the 2020-21 budget, the budget for 2020-21 has been reviewed and
both forecast and potential savings have been included in Column 3 of Appendix A,
with changes since the September report to Finance Committee being highlighted in
Column 5.
The revised financial forecast leaves year end general reserves at £348,233 as at 31st
March 2021 and at £241,566 as at 31st March 2022, with a forecast budget deficit of
£92,567 for the 2021-22 financial year.
It is important to note that the above contain no net revenue budget for the operation
of both Ryde Harbour and St. Thomas Church. Although the prepared Business Cases
for both do not project any net additional budget requirenment, they represent
ambitious projects and will require prudent financial management.
At this stage the above forecasts do not provide for any revenue costs arising from the
proposed purchase of Vectis Hall or for any further contributions to other projects or
organisations that are to be considered in both financial years.
5. Current and future Capital Investment
i. The Council continues to expand its services and has ambitious plans for capital
investment in the infrastructure of Ryde and the preservation of its heritage. Long
term low cost borrowing via the Public Works Loan Board (PWLB) is the planned
source of such investment and a loan application for £286,000 has already been
made to the Ministry of Communities, Housing & Local Government to fund the
purchase and upgrade of St Thomas Church. Revenue savings from the investment
are forecast to be sufficient to cover associated loan costs.
ii.
Having regard to the increasing service levels of recent years, the proposed
acquisition of capital assets and associated risk, it is recommended that the
Council considers increasing its level of general reserves as part of the 2021-22
budget setting process.
D - 2
iii.
General Reserves are revenue monies that are held to meet the cost of
unforeseen, additional or exceptional revenue or capital expenditure, which have
not been included in the Councils budget.The reserves can be replenished
through the precept or by them being refunded from borrowing. Repayment to
reserves of any temporary advances made from them to fund capital expenditure
(pending receipt of approved borrowing) are required to take place within the
same financial year.
iv.
There is no prescribed amount or formula for determining the level of Reserves to
be held by the Council, it is a matter for the Council tO Determine having regard to
its own circumstances and assessed risk.
6. Options
i.
To approve the revised budget figures as contained in Column 3 of Appendix A.
ii.
To take a different course of action.
D - 3
APPENDIX A
FINANCIAL FORECAST TO 31 MARCH 2022
2020-21
2020-21
2020-21
2021-22
CHANGE
FINANCE COMMITTEE
BUDGET
SEPT
REVISED
FORECAST
AMOUNT
ADMINISTRATION
£
£
£
£
£
Salaries
263,100
263,100
263,100
278,400
Employers NI
22,800
19,000
19,000
19,400
Pension contributions
56,200
44,000
44,000
44,900
Payroll Admin
1,000
1,500
1,500
1,500
Mileage Allowances
0
3,500
3,500
3,500
0
10,000
10,000
10,000
HR Advice
Bid Writing
0
4,000
4,000
0
Legal Fees
0
25,000
25,000
0
Acquisition Costs & Reports
0
20,000
20,000
0
Commercialisation Costs
0
15,000
15,000
0
Contingency
0
4,000
0
0
-4,000
TOTAL
343,100
409,100
405,100
357,700
-4,000
OVERHEADS
IT Support
6,000
6,000
6,000
6,000
Mayors Honarariium
100
100
100
100
8,000
5,000
5,000
8,000
Newsletter
Training
2,000
2,000
2,000
2,000
Broadband & Phone
4,000
4,000
4,000
4,000
General Admin & Supplies
12,000
12,000
12,000
12,000
Members Computer Supplies
500
500
500
500
Advertising
2,000
2,000
2,000
2,000
Audit
2,300
2,300
2,300
2,300
Subscriptions
2,000
2,000
2,000
2,000
4,000
4,000
4,000
4,000
Insurance
Professional Indemnity
6,100
6,100
6,100
6,100
Website
5,800
5,800
5,800
1,000
Room
Hire
800
800
800
800
TOTAL
55,600
52,600
52,600
50,800
COVID 19
0
15,000
15,000
15,000
INFLATION PROVISION
0
0
0
25,000
GRANTS & CONTRIBUTIONS
Community Grants
21,000
21,000
15,000
21,000
-6,000
Marketing Grants
15,000
15,000
7,000
15,000
-8,000
Community Connector
20,000
20,000
20,000
20,000
Ryde Carnival Association
9,000
0
0
9,000
-9,000
Aspire re Volunteer Service
0
9,000
9,000
0
9,000
New Carnival Company
3,000
3,000
3,000
3,000
Classic Car Event
1,500
0
0
8,000
Ryde Arts Festival
3,000
3,000
3,000
3,000
Harp on Wight
2,700
800
800
2,700
Aspire
15,000
15,000
15,000
15,000
Community Rail Partnership
2,000
2,000
2,000
2,000
Countryside Sites
10,000
10,000
10,000
10,000
Waterside Community Trust
20,000
20,000
20,000
20,000
10,000
10,000
0
10,000
-10,000
Waterside Splashpool
Warmer Homes
9,000
9,000
9,000
9,000
Marketing
29,000
15,000
15,000
29,000
D - 4
TOTAL
170,200
152,800
128,800
176,700
Honours Working Party
2,500
2,500
0
2,500
-2,500
New Services
78,072
0
0
0
TOTAL
420,972
308,100
257,600
355,900
-26,500
TOTAL COMMITTEE BUDGET
649,472
632,000
601,500
627,700
-30,500
FACILITIES & ASSETS COMMITTEE
BEACH SERVICES
Appley Steps
200
200
200
200
Beach Safety
21,500
21,500
21,500
21,500
Lifeguard Station
1,200
1,200
1,200
1,200
Deckchairs
0
0
0
0
Beach Cleaniing
30,000
30,000
40,000
40,000
10,000
Ryde Harbour
0
0
0
0
Additional Bin Collection
0
3,000
3,000
3,000
TOTAL
52,900
55,900
65,900
65,900
10,000
RYDE HARBOUR
Staff costs
0
0
0
72,000
Site running costs
0
0
0
8,500
Equipment
0
0
0
2,600
General overheads
0
0
0
3,400
Fixed overheads
0
0
0
4,000
Maintenance
0
0
0
20,000
Loan Repayments
0
0
0
19,200
TOTAL
0
0
0
129,700
Income
0
0
0
-131,100
TOTAL
0
0
0
-1,400
ST THOMAS CHURCH
Electric
0
0
0
0
Heating
0
0
0
0
Renovations
0
0
0
0
Business Rates
0
0
0
0
Water
0
0
0
0
Loan repayments
0
0
0
0
Income
0
0
0
0
TOTAL
0
0
0
0
LIND STREET
Rent
23,200
23,200
23,200
23,200
Rates
4,100
0
4,100
4,100
4,100
Gas
2,500
2,500
2,500
2,500
Electricity
2,000
2,000
2,000
2,000
Water
1,000
0
0
1,000
Cleaning
4,000
4,000
4,000
4,000
Facilities Management
7,000
7,000
7,000
7,000
TOTAL
43,800
38,700
42,800
43,800
D - 5
OPEN SPACES
Allotments
15,000
15,000
10,000
15,000
-5,000
Allotments Income
0
-7,800
-7,800
-7,800
Decorative Lighting
20,000
20,000
20,000
20,000
Environmental Officer
17,000
17,000
17,000
17,400
Flagpole
200
200
200
200
Hanging Baskets/planting
34,100
34,100
34,100
34,100
Island Games Water Feature
200
200
200
200
Memorial Wreath/Plaque
300
300
300
300
Million Blooms
700
0
0
700
Park Services
46,400
46,400
46,400
46,400
Playground Equipment
24,000
24,000
4,000
24,000
-20,000
Public Conveniences
80,700
80,700
70,700
80,700
-10,000
Ryde in Bloom
4,500
0
0
4,500
20,000
20,000
15,000
20,000
-5,000
Skatepark
TOTAL
263,100
250,100
210,100
255,700
-40,000
Network Ryde
172,000
172,000
172,000
172,000
TOTAL COMMITTEE BUDGET
531,800
516,700
490,800
536,000
-30,000
PLANNING COMMITTEE
Public Realm
27,500
27,500
27,500
27,500
HSAZ
47,500
47,500
47,500
47,500
Planning Enforcement
0
0
0
0
Consultations
0
0
0
0
TOTAL COMMITTEE BUDGET
75,000
75,000
75,000
75,000
TOTAL EXPENDITURE
1,256,272
1,223,700
1,167,300
1,238,700
-56,400
INCOME
Precept
1,123,605
1,123,605
1,123,605
1,123,605
Local Council Tax Grant
7,528
7,528
7,528
7,528
Bank Interest
5,000
5,000
5,000
5,000
7,800
0
0
0
Allotments
TOTAL INCOME
1,143,933
1,136,133
1,136,133
1,136,133
BALANCES B/F
292,339
375,300
375,300
344,133
SURPLUS/ DEFICIT
112,339
87,567
31,167
102,567
BALANCES C/F
180,000
287,733
344,133
241,566
D - 6