Lichfield District Council is set to dip further into its reserves to help balance the books.
A report to the local authority’s cabinet has revealed that around £731,670 is likely to be needed – up £23,580 from the figure it had expected to need during the 2013/14 financial year.
The report said: “A transfer of £731,670 from General Reserves is estimated to be needed to support the costs of activities and services for this financial year.”
This would leave the council with reserves of £2.2million – still above the £1million “safety net” it is required to keep.
A breakdown of the figures showed that the authority was projected to be ahead of budget in areas such as:
- Chief Executive – £34,880 under budget
- Finance, revenue and benefits – £178,300 under budget
- Community, health and housing – £103,410 under budget
- Operational services £10,000 under budget
But areas such as leisure parks and play (£60,000 over budget) and democratic, development and legal services (£428,170) have led to the need to call on further reserves.
A drop in revenue from planning fees and a reduction in the rent received from Debenhams as part of a deal to secure the department store’s arrival in the Three Spires Shopping Centre have been blamed for part of the projected overspend.
The leisure budget was also hit by a £30,000 loss due to the temporary closure of the Friary Grange Leisure Centre swimming pool and a £16,000 bill to repair a lift at the Lichfield Garrick theatre.
“The council’s responsibility as landlord of the Garrick Theatre means it has an obligation to repair the lift at the theatre,” the report added.
“The lift is the original one installed some 37 years ago when the Civic Hall was built. It was not replaced as part of the Garrick Theatre construction in 2003.
“Recent technical failures mean an overhaul is required in this financial year.”
The council’s Cabinet will meet to discuss the report on February 4.
