Agenda item

The Finance Business Partner - Systems with Finance IT Project responsibilities presented the item to the Committee.

Members were being asked to agree a distribution of £250,000 for the 2023/2024 financial year, to use of reserves to repay the outstanding loan on the mercury abatement equipment loan in this financial year, agree a 10% fee increase and to approve the budget for 2024/2025 period. Any fee increased decided by the Committee would be implemented following the 1 April.

Planned surplus £431,585 with no fee increase, £486,461 with a 4% increase and                      £568,775 with a 10% increase.

The financial summary detailed in the report showed a £270,000 outturn forecast less than budgeted.

The report noted there had been reduced usage of the cremation service due to works due to be completed by the end of the financial year.

Agency support had been required due to vacancies within the team, It was noted that were was a projected overspend of 65k however recruitment is underway.

The budget was increase due to increased energy costs however this was altered as the information had been fully realised.

A one-off payment for the mercury abatement equipment loan was being requested.

The officer Recommendation was to approve a 250k distribution cost.

The £845 fee is lower than surrounding comparable services.

Service time was reduced however this was expected to increase once works had been completed. 

A fee of 10% on adult cremations would see an increase of £85 which would bring the service in line with competitors.

Costs increased due to inflation however energy costs have reduced by around 20%.

£100,000 would be contributed to the reserves.

If the Committee approved the cremator repair, energy and maintenance costs should see a reduction.

The officer’s recommendation was that the Committee pay for the mercury loan in the 2024/2025 financial year.

Whilst the officer highlighted that a 4% fee increase would still be lower than competitors, the officer’s recommendation was a fee increase of 10% which would match the average of competitors. It was noted however that a 30% increase would bring them in line with the private crematorium costs.

Questions raised by Committee Members:

§  The Committee noted the £56,000 savings in the budget in relation to the Mercury abatement loan and queried why the officer felt it was better to pay it off in one sum.  The Finance Business Partner - Systems with Finance IT Project responsibilities highlighted that this would reduce a key expenditure in the budget meaning if there was any capital financing the financial position would be in a more advantages position.

§  The Committee questioned the change in the cremation numbers. The Finance Business Partner - Systems with Finance IT Project responsibilities noted there were less services due to the increase in time per service and also highlighted some early time slots aren’t often taken up.

§  The Committee questioned why income is listed as negative in the report on page 18 Appendix 3.  The Finance Business Partner - Systems with Finance IT Project responsibilities noted that the report is laid out this way even though it is surplus.

§  The Committee questioned the changes in transportation costs.  The Finance Business Partner - Systems with Finance IT Project responsibilities noted there was a decrease in transport cost, so this reduction was reflected in the budget.

§  M. Ryan (Funeral Director) sought clarification on the increase in fees from £845 to £930 recommended by the officer.  The Finance Business Partner - Systems with Finance IT Project responsibilities confirmed that was correct.

Resolution:

The Committee agreed with the officer’s recommendation and approved the budget for the following financial year.