2025/26 Budget and 2024/25 Financial Statement
Perth and Kinross Council · 3 February 2025
Back to Perth Common Good Fund Committee — 3 February 2025 and its agenda
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Perth Common Good Fund Committee 3 February 2025 2025/26 Budget & 2024/25 Financial Statement Report by Chief Finance Officer (Report No. 25/21) 1. Purpose Of Report This report seeks approval of the budget for 2025/26 for the Perth Common Good Fund and provides details of the income and expenditure to 31 December 2024 and the projected outturn for 2024/25. 2. Recommendations 2.1 The Committee is requested to: (i) Approve the Perth Common Good Fund Budget for 2025/26, as set out in Appendix 1; (ii) Note the draft Budgets for the Fund for 2026/27 and 2027/28, as set out in Appendix 1; (iii) Note the projected income and expenditure to 31 March 2025 for the Perth Common Good Fund for 2024/25, as set out in Appendix 2 to the report. 3. Background / Main Issues 3.1 The budget for 2024/25 was approved by the Committee on 29 January 2024 (Report 24/28 refers). The Committee received financial monitoring updates at the meetings on 29 April 2024 (Report 24/135 refers), 26 August 2024 (Report 24/220 refers), and 25 November 2024 (Report 24/235 refers). 3.2 The proposed budget for 2025/26 has been prepared based on activity undertaken in 2023/24 and 2024/25 and reflects current trends. The 2025/26 budget includes new lines for specific awards of Financial Assistance, and these are further explained in Section 4 of this report. Other budget lines have been adjusted for anticipated changes in the new financial year. Appendix 1 provides the proposed 2025/26 Budget for the Perth Common Good Fund and the draft budgets for 2026/27 and 2027/28. 3.3 This report also provides an update on the projected outturn for 2024/25.
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2 4. Proposals Budget 2025/26 4.1 The proposed budget for 2025/26 and the draft budgets for 2026/27 and 2027/28 reflect current prices and have been prepared in line with activity undertaken in 2023/24 and 2024/25, and in line with the anticipated costs which are likely to be incurred in future years. 4.2 Appendix 1 provides a summary of the actual outturn for the years 2021/22 to 2023/24, together with the projected outturn for 2024/25. Also included is the proposed budget for 2025/26, and draft budgets for the following two financial years. 4.3 The proposed budgets for 2026/27 to 2027/28 achieve a surplus to provide contingency for any in-year movement in the actual income received and/or expenditure incurred. 4.4 In line with previous years, the 2025/26 Perth Common Good Fund budget and medium-term plan is based upon a strategy of distributing the annual income of the Fund, whilst protecting the Fund balance. There is a budgeted deficit in 2025/26, however, this is mainly due to the Moncreiffe Island Causeway works extending into the new financial year. 4.5 There does, however, remain the risk that the Fund balance may be reduced in the event of a shortfall in income or if expenditure budgets are exceeded in any year. There also remains the risk that a common good site used for service delivery by the Council is declared surplus in the future. In this scenario, the site would transfer to the Perth Common Good Fund and the Fund would be responsible for the upkeep of the site until disposal. 4.6 The proposed budget for 2025/26 essentially replicates the budget for the current year, and adjustments to specific lines are noted as follows: - • Repairs and Maintenance – Moncreiffe Island Causeway The causeway repair works commenced in 2024/25, however, a period of adverse weather conditions and high water has resulted in the completion of works being rescheduled for Spring 2025. The delay has resulted in the cost of works increasing by £12,000, and it is proposed that the additional cost is met from underspend in the current year Repairs and Maintenance - General budget. • Financial Assistance – Perth & Kinross Mela and City of Perth Salute It is proposed to include new budget lines for the Perth & Kinross Mela and City of Perth Salute events in line with the amounts approved on 26 August 2024 (Report 24/219 refers). Both of the events are annual and the Perth Common Good Fund has provided financial assistance to the cost of the Mela event in recent years, and the Salute in
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3 2024/25. The funding awarded is at a higher level than that normally awarded as a Small Grant, and directly referencing these within the budget will aid clarity and allow other community groups to access the full allocation of Small Grants funding. • Financial Assistance – Small Grants The Small Grants budget has been maintained at £75,000. • Financial Assistance - Cost of Living This line was added to the budget in 2023/24, and the annual underspend has been carried forward to the next financial year. The 2024/25 underspend of £23,267 is carried forward to 2025/26. 4.7 There are small adjustments to other budget lines, and these are in line with current pricing. The anticipated budgeted deficit for 2025/26 is £18,730 which is mainly due to the rephasing of the Moncreiffe Island Causeway works into 2025/26. Financial Statement 2024/25 4.8 Appendix 2 provides the 2024/25 Financial Statement which includes the Budget approved by Committee on 29 January 2024 (Report 24/28 refers). 4.9 Following the update to Committee on 25 November 2024 (Report 24/235 refers), the reported surplus of £233 has changed to £91,556, a movement of £91,323 and is mainly due to the following: • There is a current year underspend of £12,000 on the Repairs & Maintenance – General budget, which has been allocated to the increased cost of the Moncreiffe Island Causeway repair works to be completed in 2025/26. • The year end projections for Financial Assistance have been updated in line with the funding requests to be considered by Committee at this meeting. This includes £10,520 of Cost of Living funding which was approved in 2023/24 but has now been declined by the applicant. The anticipated underspend to 31 March 2025 across all Financial Assistance budget lines is £27,455, a movement of £29,955 from the previous report on 25 November 2024. • Additional repairs and the replacement of the Christmas decorations and installations has resulted in a £6,000 overspend in the Erect, Dismantle, & Maintain Christmas Lights budget. • The contribution to the cost of the Christmas Lights Switch on Ceremony is not required and results in an underspend of £50,000. • Rents, Fees, & Charges Income has increased by £5,000 mainly due to all shops now being occupied.
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4 4.10 The estimated Fund balance at 31 March 2025 is £2,145,737, a movement of £91,323, reflecting the updated projections detailed in paragraph 4.9 above. Author(s) Name Designation Contact Details Fiona Lambie Accountant CHXFinance@pkc.gov.uk Approved Name Designation Date Scott Walker Chief Finance Officer 22 January 2025
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5 ANNEX 1. Implications, Assessments, Consultation and Communication Strategic Implications Yes / None Community Plan / Single Outcome Agreement None Corporate Plan Yes Resource Implications Financial Yes Workforce None Asset Management (land, property, IST) None Assessments Equality Impact Assessment Yes Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Yes Legal and Governance None Risk None Consultation Internal Yes External None Communication Communications Plan None 1. Strategic Implications Corporate Plan 1.1 The Council’s Corporate Plan 2022 – 2027 lays out seven outcome focussed strategic objectives which provide clear strategic direction, inform decisions at a corporate and service level and shape resources allocation. They are as follows: • Tackling poverty • Tackling climate change and supporting sustainable places • Growing a sustainable and inclusive local economy • Enabling our children and young people to achieve their full potential • Protecting and caring for our most vulnerable people • Supporting and promoting physical and mental wellbeing • Placing communities at the heart of how we work 1.2 This report relates to all objectives.
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6 2. Resource Implications Financial 2.1 There are no direct financial implications arising from this report other than those reported within the body of the main report. 3. Assessments Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. 3.2 The information contained within this report has been considered under the Corporate Equalities Impact Assessment process (EqIA) and has been assessed as not relevant for the purposes of EqIA. Strategic Environmental Assessment 3.3 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.4 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. Sustainability 3.5 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. In terms of the Climate Change Act, the Council has a general duty to demonstrate its commitment to sustainability and the community, environmental and economic impacts of its actions. 3.6 The information contained within this report has been considered under the Act. However, no action is required as the Act does not apply to the matters presented in this report. 4. Consultation Internal 4.1 No consultation has been necessary in the preparation of this report.
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7 5. Background Papers 5.1 No background papers, as defined by Section 50D of the Local Government (Scotland) Act 1973 (other than any containing confidential or exempt information) were relied on to any material extent in preparing the above report. 6. Appendices • Appendix 1 – Perth Common Good Fund – Audited Outturn for 2021/22 to 2023/24: Projected Income & Expenditure for 2024/25; and Draft Budgets for 2025/26 to 2027/28. • Appendix 2 – Perth Common Good Fund – Financial Statement for the period to 31 December 2024 for Financial Year 2024/25.