Meeting Details

Revolving Investment Fund Committee
6 Dec 2017 - 18:00 to 21:00
Occurred

Documents

Agenda

Part A
1 Welcome and Announcements
The Chairman will welcome members of the public and Councillors and remind everyone to use microphones at all times when they are speaking. The Chairman will also explain action in the event of an emergency, mobile phones switched to silent, audio-recording of the meeting. Councillors who are members of the committee will introduce themselves.
2 Substitutions
Councillors will be asked to say if they are attending on behalf of a Committee member who is absent.
3 Urgent Items
The Chairman will announce if there is any item not on the published agenda which will be considered because it is urgent and will explain the reason for the urgency.
4 Declarations of Interest
Councillors will be asked to say if there are any items on the agenda about which they have a disclosable pecuniary interest which would prevent them from participating in any discussion of the item or participating in any vote upon the item, or any other pecuniary interest or non-pecuniary interest.
5 Minutes of Previous Meeting
The Councillors will be invited to confirm that the minutes of the meeting held on 28 June 2017 are a correct record.
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RESOLVED that the minutes of the meeting held on 28 June 2017 be confirmed as a correct record.
6 Have Your Say!
The Chairman will invite members of the public to indicate if they wish to speak or present a petition on any item included on the agenda or any other matter relating to the terms of reference of the meeting. Please indicate your wish to speak at this point if your name has not been noted by Council staff.
The Committee will consider a report that provides an update on projected revenue income generated by the Revolving Investment Fund (RIF), its capital expenditure, and projected capital receipts.
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Councillor Smith (in respect of his membership of the District Council Network) declared a non-pecuniary interest in the following item pursuant to the provisions of Meetings General Procedure Rule 7(5).

The Assistant Chief Executive submitted a report a copy of which had been circulated to each Member.

Steve Heath, Finance Manager, introduced the report to the Committee.  The report set out the latest financial position on the Revolving Investment Fund (RIF) and invited the Committee to reallocate £1.15 m of existing resources to meeting proposed detailed funding allocations.  The report highlighted the projected revenue income for the RIF would be £911,000 by 2021/22. It also highlighted the expenditure forecast and the status of the performance of the projects against capital schemes.  The following schemes were currently shown as amber:-

Northern Gateway – Sports Hub
Northern Gateway – South
Surface Water Flooding - Distillery Lane/Haven Road
Creative Business Centre 

The Medium Term Financial Forecast for the RIF showed a deficit of £495k by the end of 2021/22, which was considered to be a manageable figure. A number of new detailed areas of spend had been identified, totalling £1.15 million, which were listed in Appendix D.   It was proposed that these be funded from existing funding allocations and underspends within the RIF.

Members of the Committee explored the reasons for the schemes currently shown as amber.  It was reported that in respect of the Creative Business Centre, this was a consequence of the overspend. This would be resolved by the proposed reallocation of resources.  Costs had risen for the Northern Gateway Sports Hub and in respect of Northern Gateway South, delays in the planning process meant that income would come in later than expected. The Surface Water Flooding Scheme, for which Essex County Council was the lead authority, was currently making slow progress.  It was also stressed that a number of projects had come in under budget, and that overall overspends had been more than matched by underspends. It was also confirmed that the new funding allocations would be met solely by reallocations within the fund and no additional resources would be directed to the fund.

Members were pleased to note the increase in revenue income within the RIF which was timely given the pressures on the budget going forward.  It was confirmed that overall the Council was achieving a healthy return on the funds in the RIF.

In respect of the Minimum Revenue Provision, it was also suggested that the Council explore whether some building assets could be classified with a 50 year life, and that the MRP should be based only on building value and not the land value, in order to minimise the impact. It was also suggested that the Council explore cheaper sources of borrowing. In response, it was explained that the MRP regulations specified a maximum of 40 years.  However, revised regulations were currently out for consultation and the issue would also be raised with the Council’s external auditors.

RESOLVED that:-

(a) The latest financial position on the Revolving Investment Fund be noted.

(b) £1.15m of existing resources be relocated to meet the proposed detailed funding allocations in Appendix D of the Assistant Chief Executive’s report.

REASONS

Cabinet agreed to create the RIF as a way to recycle capital receipts into profitable high income producing development schemes and regeneration/economic growth projects. This report set out the updated financial position of the RIF and proposes allocations of funding to specific projects. 

ALTERNATIVE OPTIONS

It would be possible to consider different allocations to projects. However, the proposals in this report represent a considered view of the cost to deliver a number of projects and income budget targets. 
 
8 Exclusion of the Public (Cabinet)
In accordance with Section 100A(4) of the Local Government Act 1972 and in accordance with The Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 to exclude the public, including the press, from the meeting so that any items containing exempt information (for example personal, financial or legal advice), in Part B of this agenda (printed on yellow paper) can be decided. (Exempt information is defined in Section 100I and Schedule 12A of the Local Government Act 1972).
Publication and Call in Arrangements
Date Published 7 December 2017

Date when decisions may be implemented (unless ‘called in’) 5pm 14 December 2017 

NB All decisions except urgent decisions, those subject to pre-scrutiny and those recommended to Council may be subject to the Call-in Procedure.  

Requests for the scrutiny of relevant decisions by the Scrutiny Panel must be signed by at least ONE Councillor AND FOUR other Councillors to countersign the call-in form OR to indicate support by e-mail.  All such requests must be delivered to the Proper Officer by no later than 5pm on Thursday 14 December 2017.
 
Part B
The Committee will consider Appendices, A, C and D to the report on the Revolving Investment Fund Financial Summary in Part A of the agenda.
  1. RIF finance summary - Appendix A
    • This report is not for publication by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (financial / business affairs of a particular person, including the authority holding information).
  2. RIF finance summary - Appendix C
    • This report is not for publication by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (financial / business affairs of a particular person, including the authority holding information).
  3. RIF finance summary - Appendix D
    • This report is not for publication by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (financial / business affairs of a particular person, including the authority holding information).
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The Committee resolved under Section 100A(4) of the Local Government Act 1972 and in accordance with the Local Authorities (Executive Arrangements)(Meetings and Access to Information)(England) Regulations 2012 to exclude the public from the meeting for the following item as they involved the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972. 

This minute is not for publication by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (information relating to the financial or business affairs of a particular person, including the authority holding the information).

Meeting Documents

  1. Minutes 06-12-17 - not for publication extract - Exempt

Attendance

NameReason for Sending ApologySubstituted By
Councillor Annie Feltham Councillor Jessica Scott-Boutell
Councillor Tim Young Councillor Michael Lilley

Declarations of Interests

Visitors

Visitor Information is not yet available for this meeting