Members of Derry City and Strabane District Council’s Governance and Strategic Planning Committee have been told of a number of positive savings and increases in income streams within the organisation for the first quarter of the financial year.
Council’s Lead Finance Officer Alfie Dallas delivered the Quarter 1 Financial Outturn report at this week’s monthly committee meeting in the Guildhall Chamber which acknowledged that significant financial challenges had to be addressed during the 2023/24 rate process.
The challenges included staff pay pressures, global cost of living pressures, inflation and central government grant cuts which led to a 7.97% increase in the District rate being struck in February of this year.
That process included a cost savings programme worth some £3.7m across all departments.
Despite those pressures, a surplus of £435,000 has been reported for the first three months of the financial year, partly due to a growth in income levels from Council’s leisure, planning and building control services.
Members were told that leisure income has now returned to pre pandemic levels and, despite the wider global challenges, that planning and building control services are benefiting from a continued growth on building activity and new developments in the Council area.
The report also highlights savings in electricity, oil and gas budgets due to a reduction in prices to below those forecast during the rates process and savings generally across all Council services in relation to expenditure control, travel and vacancy control.
The surplus also benefited from Bank Interest received being ahead of budget to the tune of £135,000 due to higher interest rates and funds on long term deposits accruing higher interest rates on Council surplus cash and reserves.
“Overall this is a very positive position, particularly given the substantial savings programme and corporate savings target that Council has had to implement,” Mr Dallas told members.
“It is important however to note that this is a very early point in the financial year and that the position would not have been as positive had Council not had a financial contingency reserve in place to cover Rates Support Grant cuts and other pressures that arose following the rates process.”
The full report and agenda from Council’s Committee Meetings can be accessed on Council’s website at: https://www.derrystrabane.com/about-council/council-business
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