Witnesses:
Jane Lovett,
Honorary Treasurer
James Taylor, Strategic
Manager- Basingstoke Canal (SCC/HCC)
Key
points raised during the discussion:
- The
Honorary Treasurer introduced the Final Accounts 2018/19. It was
reported that the Basingstoke Canal Authority was currently in a
sound financial position. At the end of the year the Canal made a
contribution to reserves of £105,180 compared to the drawdown
of £6,000 predicted in September. However, an overspend of
£145,000 would have resulted if planned maintenance works had not slipped
into 2019/20. The Honorary Treasurer stated that this showed the
tight nature of the revenue budget as there was not
“spare” budget to cover unplanned urgent Canal
maintenance works.
-
The Honorary Treasurer addressed the
Chairman’s query on the underspend against the profiled spend
of both Hampshire and Surrey County Councils’ capital
expenditure programmes. It was reported by the Honorary Treasurer
that the lower spend was attributable to a combination of factors:
availability of relevant staff resource, the permissions and
consents required from third parties and adjoining neighbours and
difficulties in appointing appropriate contractors.
-
The Honorary Treasurer stressed that it was
important that both County Councils understood that the underspend
reflects the allocation of capital resource as opposed to the
payments profile and that once the contractors are on site, the
expenditure would increase dramatically above the annual allocation
and that both Counties still have a capital works
backlog.
-
Members asked about the slipped expenditure for
Deepcut Depot, and officers noted that the lease had not been
re-secured. Officers noted that SCC Estates and Ministry of Defence
were working on this.
-
Members questioned Surrey Heath Borough
Council’s shortfall against the funding formula. It was
reported that although Guildford, Surrey Heath and Runnymede
Borough Councils’ had signed up to the Memorandum of
Agreement, it was minuted in previous Joint Management Committees
that they had not agreed to the funding formula. It was reported
that the grant structure at Surrey Heath Borough Council had
recently changed so a re-assessment would be undertaken to continue
the funding given to the BCA. The Committee agreed that an
invitation would be sent to the new Leader of the Council to invite
him to the Canal Centre.
-
Members raised the possibility of forming a task
group to update the Memorandum of Agreement (2014), however, the
Vice-Chairman and Honorary Treasurer noted caution over revisiting
the terms of the Memorandum of Agreement.
- The
Honorary Treasurer summarised
the funding formula for the Partners,
with half of the cost sharing
funded by Hampshire and Surrey County Councils and the district and
borough councils sharing the other half based upon their population
and mileage of the canal in their areas. She recommended that the
formula should not be changed due to the current difficult
financial position of councils.
-
Members informed the Committee that the Basingstoke
Canal Authority can receive funding and support through lotteries
and schemes, where those in Rushmoor Borough Council, Surrey Heath
Borough Council and Surrey County Council were
mentioned.
Actions/ further information to be provided:
- A3/19: The Committee
agreed that an invitation to the Canal Centre would be sent to the
new leader of Surrey Heath Borough Council.
- A4/19: Members
(Councillors) to go back to relevant councils to discuss lotteries
and funding schemes.
RESOLVED:
- The Committee
reviewed and agreed the outturn position for the year
2018/19.
- The Committee noted
the effect of the slipped expenditure on the Unallocated
Reserves.