Contact: Bevis Ingram, ext 7508

1 Summary

1.1 The attached paper outlines the latest position with monitoring the Recreation and Heritage budget for the year 2001/02, based on information available at the end of September 2001.

1.2 The paper draws attention to the likely overspendings due to income lost due to Foot and Mouth disease (£392,000 net) and the restructurings of the Recreation and Heritage department (£20,000 net).

1.3 following decision is sought:

2 Reason

2.1 To give evidence of regular monitoring of spending against budget.

3 Other options considered and rejected:

Not applicable

4 Conflicts of interest declared by the decision maker or a member or officer consulted:

Not applicable

5 Dispensation granted by the Standards Committee

Not applicable

6 Reason(s) for the matter being dealt with if urgent

Not applicable

Approved by: Date:

Councillor J Waddington

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1. Published works.

2. Documents which disclose exempt or confidential information as defined in the Act.

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Contact: Bevis Ingram, ext 7508

7 Introduction

7.1 This report is the first monitoring report for the 2001/02 Recreation and Heritage revenue budget. The report forecasts overspendings due to Foot and Mouth Disease (£376,000 net) and the restructuring of Recreation and Heritage (£30,000 net).

8 Cash Limits

8.1 The Recreation and Heritage revenue budget cash limit for 2001/02 is £24,661,000.

9 2001/02 Forecast Revenue Budget Outturn

9.1 The appendix to this report shows the detailed forecast outturn figures. The first page shows a summary of all Recreation and Heritage services; this is followed by a page for each service showing a subjective breakdown of the budget, spending to date, and any significant financial issues identified.

9.2 The main financial issues identified are the effects of Foot and Mouth Disease (principally income lost in the Countryside Service and Outdoor centres, see below), and the cost of restructuring the Recreation and Heritage department.

9.3 Other budget lines are shown as a forecast of expenditure exactly matching budget. Clearly this is unlikely to happen. What this shows at this stage of the year is that no significant financial issues - either pressures that cannot be continued or savings that can be made - have been identified.

10 Foot and Mouth Disease

10.1 Foot and Mouth disease has had a big impact on the Countryside Service and on Outdoor Centres. The main financial impact has been in terms of lost income as sites have had to be closed, but significant additional costs have been incurred in terms of staff time and some additional supplies and services costs (eg disinfectant mats, payment of compensation to concessionaires etc).

10.2 The approach to closing sites was endorsed by the Recreation and Heritage Committee in June 2001, and followed advice from the relevant regulatory bodies. Sites re-opened as soon as they could, but many areas, particularly those generating most income, remained closed for most of the summer. Most sites are now either open or close to being open and it is hoped that further significant additional costs will not be incurred.

10.3 The principal areas of lost income have been at the farms at Manor Farm Country Park (£149,000) and Sir George Staunton Country Park. Sir George Staunton Country Park is run by a Joint Management Committee (JMC). The JMC will meet on 8 November and will receive a detailed report outlining the projected net deficit for 2001/02 of £185,400 (gross cost £212,200 less savings of £26,800). Under the terms of the JMC agreement this deficit should be divided by formula between the JMC partners (Hampshire County Council, Havant Borough Council, East Hampshire District Council and Portsmouth City council); Hampshire County Council's share (61%) would be £113,100 and this figure has been included in the projections in this report.

10.4 In total the gross costs of Foot and Mouth are as follows:

Countryside Service

£

Lost Income 162,000

Employee costs 50,000

Supplies and services 57,000

Sir George Staunton `share' 113,100

----------

382,100

----------

Outdoor Centres

Lost income 54,900

Employee costs 2,000

Supplies and services 6,200

---------

63,100

---------

This gives a total gross cost of £445,200 to Recreation and Heritage.

10.5 Efforts have been made in both the Countryside Service and in the Outdoor Centres to make savings to offset these costs. Employee costs largely reflects redirection of staff to Foot and Mouth work (resulting in other work being deferred). Maintenance works and purchases of equipment have been deferred and inflation was withheld from Countryside Service grants. In total, the following savings have been made:

Countryside Service revenue 57,600

Outdoor Centres 11,600

---------

69,200 ---------

10.6 The net projected overspend due to Foot and Mouth is therefore:

Gross cost 445,200

Less savings 69,200

----------

376,000

----------

Receommendation

It is recommended that:

1 The attention of the Cabinet is drawn to the latest projection of the finanical costs of Foot and Mouth disease, as outlined in paragraph 4.5.

2 That Recreation and Heritage Chief Officers continue to identify opportunities for savings to cover the costs of the restructuring and to contribute to reducing the rest of the overspend.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

3. Published works.

4. Documents which disclose exempt or confidential information as defined in the Act.

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