Issue - meetings

This report presents two proposed additions to the Council’s Capital Programme for consideration and approval.

Discussion:

This report provided details of proposed schemes which would provide for additional investment in the existing operational property portfolio, via the building repairs and maintenance fund, in the existing non operational portfolio and in new non operational property with a view to generating increases in annual rental income and longer term capital growth.

The Leader of the Council, Councillor Jarrett, supported by the Portfolio Holder for Resources, Councillor Gulvin, proposed the recommendations set out in the report.

Councillor Maple, supported by Councillor Murray, proposed the following amendment:

“Delete item (ii) in paragraph 10.2 of item 13 on the Council agenda so that it now reads:

10.       Recommendations

10.1      That Council approves the following additions to the capital programme:

10.1.1            £1.0 million addition to the building repairs and maintenance           fund, to be funded from capital receipts.

10.1.2            £2.0 million addition to the capital programme to allow for                              investment in property.

10.2      Council is furthermore requested to delegate authority to the Assistant Director Legal and Corporate Services, in consultation with the Leader, Portfolio Holder for Resources and Chief Finance Officer:

To agree a strategy and robust set of criteria for future investment in property, which complements  the Council’s current investment priorities of security, liquidity and then yield.”

On being put to the vote, the amendment was lost.

Decision:

a)    The Council approved the following additions to the capital programme:

i)             £1.0 million addition to the building repairs and maintenance fund, to be funded from capital receipts.

ii)            £2.0 million addition to the capital programme to allow for investment in property.

b)    The Council agreed to delegate authority to the Assistant Director Legal and Corporate Services, in consultation with the Leader, Portfolio Holder for Resources and Chief Finance Officer:

(i)    To agree a strategy and robust set of criteria for future investment in property, which complements the Council’s current investment priorities of security, liquidity and then yield.

(ii)   To acquire, manage and let suitable investment properties.

Background:

This report set out details of a proposed addition to the capital programme, in order to increase in the provision of the Building Repairs and Maintenance Fund.

The Fund formed part of the Council’s capital programme and was utilised to support the ongoing repair and maintenance of operational buildings.  It was noted that the fund was largely committed and in order to continue to undertake essential building maintenance its replenishment was being sought.

Reasons:

To provide sufficient capital resource to maintain key operational buildings and the services delivered from them.