Meeting Details

Revolving Investment Fund Committee
16 Jan 2019 - 18:00 to 20:00
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 are a correct record of the meeting held on 20 December 2018.
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RESOLVED that the minutes of the meeting on 20 December 2018 be confirmed a 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 providing an update on the projected revenue income generated by the Revolving Investment Fund, its capital expenditure and projected capital receipts.    
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The Assistant Director, Policy and Corporate, submitted a report a copy of which had been circulated to each Member.  Sean Plummer, Strategic Finance Manager, attended to present the report and assist the Committee.

The report set out the current position on the Revolving Investment Fund (RIF), the projected forecasts, an update on the current projects funded through the RIF, some proposed allocations for new schemes and reallocations with the Fund to ensure that overall it remained balanced.  The RIF had been established to recycle capital receipts into high income producing development schemes and also to fund regeneration and economic growth projects. 

The revenue income into the RIF was currently estimated as £618,000 per annum and was forecast to continue to grow significantly.  A small overspend of £68k was forecast on the overall programme, and this had been reported to the Scrutiny Panel. This needed to be seen in the context of an overall expenditure forecast of £37 million.  The funding streams into the RIF were variable and it was important to manage the income into and expenditure out of the RIF in order that it remained balanced over the medium term.  The specific contributions into the RIF were set out in the report.  Whilst most of the funding came from capital receipts or external funding, the Council had also agreed a modest amount of long term borrowing. 

Over the projected life of the RIF there was a gap of around £840,000 between income and expenditure. In addition there are short to medium term cashflow deficits which would be covered through temporary borrowing.  Whilst it was acknowledged that there were some risks around short term borrowing, this type of borrowing was not uncommon.  The RIF was actively managed to ensure that the amount of short term borrowing was kept to a minimum.

It was stressed that the RIF delivered very real benefits in terms of stimulating economic growth and jobs.  The Amphora Phase 1 scheme, which had secured the retention of a significant local employer at the same time as delivering an income stream for the Council, was an example of this.

In discussion members stressed the value of the RIF.  It was a mature programme that had proved its value.  It stimulated regeneration and jobs and it was an example that was beginning to be followed by other authorities. The level of funding directed into the RIF demonstrated the Council’s commitment to securing investment and stimulating the local economy. The RIF played an important role in securing and preparing sites that would then secure significant external investment.  

The Committee indicated that it supported the allocation of £1.275 million of funds to balance the RIF forecast and proposed new funding allocations, as set out in Appendix D, and that authority be delegated to the Portfolio Holder for Resources to agree individual allocations from the £250K for feasibility studies or other predevelopment work.


RESOLVED that:-

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

(b) The reallocation of £1.275m of funds to balance the RIF forecast and proposed new funding allocations detailed in Appendix D of the Assistant Director’s report be agreed..

(c) Authority to agree the individual allocations from the £250k proposed for feasibility studies or other pre-development work up to £50k be delegated to the Portfolio Holder for Resources. 


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. The Assistant Director’s report sets 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. Further funding allocations are required to carry out feasibility studies if new income streams for the Council are to be generated in the future.
 
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 17 January 2019

Date when decisions may be implemented(unless ‘called in’) 5pm 24 January 2019 

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 24 January 2019.
 
Part B
To confirm as a correct record the not for publication extract from the minutes of the meeting held on 20 December 2018.
  1. RIF 201218 - not for publication extract (1)
    • 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. 

RESOLVED that the not for publication minutes of the meeting held on 20 December 208 be confirmed as a correct record.

To note the not for publication Appendices A and C to the Assistant Director's report.
  1. RIF Financial Update 160119 - Appx 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 Financial Update 160119 - Appx 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).
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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

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Declarations of Interests

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