Oswestry council's finances look 'healthy' despite pandemic impact
Oswestry Town Council’s finances are looking “healthy” despite losing hundreds of thousands of pounds in car parking income during the coronavirus lockdown, members have heard.
A report considered by councillors at a meeting of Oswestry Town Council on Wednesday evening set out the authority’s financial position in light of the unprecedented income loss caused by the pandemic.
The report, by finance officer Roger Dyke, painted an optimistic picture with a projected loss of just £20,000 compared with the 2020/21 budget signed off by the council in January.
But Mr Dyke warned that the impact of a potential second wave or local lockdown could “decimate” the council’s income.
Presenting the report to councillors, town clerk Arren Roberts said: “What we want to do is give you regular updates on our financial position. It demonstrates that as officers we are doing all we can to reduce the costs of our operation.
“The biggest impact has been on our car parking income. We are hopeful that is returning but it’s unlikely to return to the levels it was at last year.
“Clearly there are some decisions for council to make regarding budgets, but we are in a healthy financial position.”
The town council owns and operates three of Oswestry’s main car parks, but stopped charging for parking at the start of lockdown in line with Shropshire Council’s decision to suspend parking charges across the county.
Mr Dyke’s report said the loss of car parking income was expected to be in the region of £212,000, with further losses in market income and property rental.
But this was compensated for in part by the fact that the council’s balance at the end of the 2019/20 financial year on March 31 was £93,189 higher than the projection made when the budget for this year was set. It said additional savings had also been made due to the reduction in council services during the pandemic.
Mr Dyke added: “Obviously there is still a good deal of uncertainty of what will happen as we move through the year and further lockdowns could further seriously decimate our income therefore it would be prudent to continue to budget very conservatively and look for cost savings wherever possible.”
Town mayor Duncan Kerr asked councillors to think about further cost saving measures and inform officers of any ideas.
He added: “There is an obligation for us all to put our thinking caps on.”
