Agenda item

LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW

(Papers relied on to write the report, which do not contain exempt information and which are not published elsewhere)

Contact Officer, telephone number and email:

Renata Garfoot, Asset Strategy Manager tel: 01263 516086. Email.  Renata.Garfoot@north-norfolk.gov.uk

Cllr E Seward – Portfolio Holder for Finance and Assets introduced the report and informed Members that updates were provided as a result the Committee’s Task and Finish Group review of beach huts and chalets undertaken in 2018. He added that refurbishments planned in Cromer and Sheringham were expected to begin in November and were due for completion in March.

Questions and Discussion

       i.          Cllr T Adams raised concerns on the service recharges, as he felt they did not promote a positive business case for retaining the assets. The EASM replied that the recharges included all costs required to run Council services, some of which did not relate directly to supporting the assets. She added that all recharges would be reconsidered as part of the zero based budgeting exercise, as it could provide an opportunity to improve associated costs.

      ii.          Cllr L Withington stated that she found it difficult to reach any conclusions from the report, and noted that whilst occupancy had increased, this had not been made clear. She added that income for beach huts and chalets could also be separated to determine which assets were generating a better income, to better understand the service. Cllr L Withington stated that overall, she was unable to determine whether it was more beneficial to let the assets on a weekly or annual basis, and also requested waiting list information and a clear strategy for the assets. The EASM confirmed that she would provide the information required.

     iii.          Cllr V Holliday referred to the maintenance schedule and stated that there did not appear to be any aspiration to maintain a good condition, and asked whether this had an impact on occupancy. The EASM replied that the officers did aspire to maintain good overall condition of the assets, but accepted that the current condition was lower than expected, as a result of delays to maintenance works. She added that this could have an impact on occupancy levels, though this was more likely the result of limited marketing.

    iv.          Cllr C Cushing referred to income projections and asked whether further information was available beyond 2021. He noted that annual profit appeared to be approximately £50k, and asked whether this could be expected to grow. The EASM replied that she hoped growth could be expected, and suggested that this would be achieved by the adjustment of fees on weekly lets, with analysis suggesting that profits could be increased from the current £38k, to £100k. She added that increased occupancy would result in some increased costs, but this would be offset by extending the peak letting season, creating a mid-season rate and offering block bookings.

      v.          Cllr E Seward stated that a good offer was crucial to increasing occupancy, and this was why maintenance and improvement was important despite the associated costs.

RESOLVED

1.     To receive and note update.

ACTIONS

1.     Estates and Asset Strategy Manager to provide additional information as requested by the Committee on the following matters:

·        Occupancy increases

·        Income divided by Beach Hut or Chalets

·        Comparison of weekly and annual lets

·        Overview of current waiting list

·        Strategy Document to outline direction

·        Income projection beyond 2021