City's Budget: Overspend is 'More apparent than real'

12.00.00am GMT Fri 5th Dec 2003

The city's Lib Dem group have presented a revision to the council's annual budget. They announced an apparent overspend of £980,000. The result may be a need to use some of the council's reserves.

But as the council was told, the apparent overspend is due to unforeseen expenditures such as lower than expected car parking revenues and a one-off larger-than-planned payment to the new city swimming pool management company which will actually result in a better financial deal for the council over the next few years.

Cllr Nichola Harrison, Exec Councillor for the Environment had good news to give the council: in the last few weeks, the car park revenues have actually been higher than expected so the overspend may end up being much lower by the end of the financial year.

Swimming Contract will save City £1 Million

In addition an apparent overspend on swimming simply due to an advance payment under the new contract and will be recovered in lower expenditure in future years. Overall the new swimming service contract will save the council more than £1 m.