Agenda item

The purpose of this report is to present the final accounts of the Basingstoke Canal for the year ended 31 March 2023, and the revised budget and forecast outturn for the year to 31 March 2024 to the Joint Management Committee for approval.

Officers:

Jenny Wadham, Honorary Treasurer

Katie McDonald, Natural Capital Group Manager

James Taylor, Strategic Manager – Basingstoke Canal

Jo Heath, Assistant Director, Recreation, Information and Business Services

Key points raised during the discussion:

1.    The report was introduced by theHonorary Treasurer who explained that the final outturn position for the year to 31 March 2023 is a draw from reserves of £149,094 being the net expenditure on revenue activities. The £149,094 draw represented a significant increase on the £82,000 budgeted draw, primarily as a result of unplanned maintenance works, energy price inflation, the impact of the summer drought which negatively affected both visitor income and energy usage, and a reduction in partner contributions. Additional donations from the Basingstoke Canal Society and Crookham Village Parish Council totalling £92,000 had funded towpath works, spot dredging and the purchase of a weed cutter that would not otherwise have been possible.

2.    After the forward budget had been approved, the Basingstoke Canal Strategic Manager was notified of a further reduction of £22,000 in Partners’ contributions for the 2023/24 financial year.

3.    The members from Woking Borough Council noted that due to financial issues facing their council, funding for the canal would be reduced which has been agreed by government commissioners.

4.    The Chairman agreed it would be positive for the JMC to write to Woking Borough Council thanking them for their funding towards the canal but also encouraging them to continue with their contributions to the canal.

5.    The Assistant Director, Recreation, Information and Business Services explained that work was being undertaken for a presentation in November to review the financial management of  the canal. It was felt that a long term financial plan for the canal was required, including the contributions from all partners.

6.    The Inland Waterways Association representative asked if there was enough funding available if there was a breach on the canal. Officers stated that funding for a breach on the canal would be covered by both Surrey and Hampshire County Councils as land owners and not Basingstoke Canal Authority (BCA) reserves.

7.    It was queried if funding for the canal could be raised via local businesses and developers. The Strategic Manager for the Canal explained that CIL and S106 funding was available but this funding could not be used to pay for staffing. The Basingstoke Canal Society liaised with businesses on behalf of the BCA and had raised £4-5k in 2022.

8.    The Assistant Director, Recreation, Information and Business Services explained that work was being undertaken for a presentation in November to review the financial management of  the canal. It was felt that a long term financial plan for the canal was required, including the contributions from all partners.

Actions/ further information to be provided:

Action A1/23- For the Strategic Manager for the Canal to write to all partner organisations thanking them for their funding towards the canal but also encouraging them to continue with their contributions towards the canal.

Resolved:

1.    The committee approved the final accounts for the 2022/23 financial year.

2.    The committee approved the revised budget for the 2023/24 financial year.

3.    The committee approved the forecast outturn for the 2023/24 financial year.

4.    The committee approved the proposal that a minimum unallocated reserve balance of £200,000 be added to the reserves policy.

5.    The Committee noted the forward look position.