Agenda item

Report CFM484 of the Cabinet Member for Finance.

The Cabinet Member for Finance proposed the recommendations in report number CFM484, which contained proposed changes to the Budget framework that was approved by Council on 1 March 2018. He added that in accordance with the Constitution, Council approval was required to amend the Budget framework.

The Cabinet Member explained that the report detailed the projected income of £1.95m that the Council would receive as part of the 2018/19 business rate pilot for Lincolnshire. The report set out proposals for the use of this additional income, which included balancing the revenue budget, funding new priority growth projects, funding of one-off urgent items arising in 2018/19, the formation of a property maintenance reserve to fund emergency repairs arising during the financial year and the remainder being set aside in a specific reserve to finance future growth and regeneration projects.

He explained that the opportunity had been taken to review the Council’s earmarked reserves as part of the preparatory works for the development of the 2019/20 Budget proposals to ensure that the funds were earmarked in line with priorities and to consolidate reserves where appropriate.

The report also proposed adjustments to the 2018/19 Budget in respect of the cinema development in Grantham. The Cabinet Member for Finance stated that the Council had been successful in its bid to the Greater Lincolnshire Local Enterprise Partnership for £2m towards the delivery of a new Technology and Innovation Centre as part of the project in partnership with a higher education provider. The success of the funding bid would reduce the funding commitment from the Council’s Capital Reserve. The project required a change to the Budget to reflect the costs of the fit out of the facility; there was also a requirement for one-off revenue funding for the first year and additional costs in respect of project management. The proposition was seconded.

Debate ensued, during which reference was made to the previously agreed and adjusted budgets in respect of the cinema project, including the Budget adjustment for the public realm works. The grant of funding from the Lincolnshire Local Enterprise Partnership was welcomed, however one Member was concerned that Council would be asked again in the future to adjust the Budget in respect of the project. Members were reassured that there should not be any additional requirement to adjust this project. Members were also reminded that the grant funding from the Lincolnshire Local Enterprise Partnership had the result of reducing the requirement for Council funding by £1.020m.

Members were interested in whether the cinema project was on schedule and when it was anticipated that the facility would be opened. A question was also asked about the process that was undertaken to select the operator. It was hoped that a date for the handover of the cinema shell to Savoy would be announced shortly, it would then be up to the operator to fit out the cinema and determine the date on which it would open. It was anticipated that the public realm works would be completed in June 2019.

The Cabinet Member with responsibility for Communities, Health, Wellbeing and Skills, within whose remit the project fell stated that public realm works had not formed part of the scheme that was inherited by the administration, so the costs for this work had not been included when the project was first brought to Council to agree Budget provision. She added that the revised plans included provision for A3 establishments so that coffee shops and restaurants could be incorporated within the development. The Council would benefit from the leasing of these.

Members spoke favourably of the Technology and Innovation Centre and how it would help people seeking higher education remain in Grantham and attract businesses to the town.

Some questions were asked about the property maintenance reserve and whether a condition survey of the Council’s assets had been undertaken as there was some concern about whether the proposed £110k provision would be sufficient. An explanation was given about the anticipated uses of the property maintenance reserve, with an example of a dancing school in Stamford that had a leaking roof, and how it complemented a repairs allocation of £100k. Creation of the reserve would provide a fund for responding to issues like this in a timely manner. The Deputy Leader, whose remit included the management of the Council’s assets stated that he felt that the provision was sufficient and that it was right for any project that would cost more than this to be brought before a wider group of Members. Members were also advised that a repairs schedule was being prepared.

One Member asked about the maintenance of closed church yards, which was referred to in the list of priority expenditure items. While details could not be provided at the meeting, the Deputy Leader promised to supply a list of the closed churchyards for which the Council was responsible.

On being put to the vote, Members AGREED to:

1. Approve the allocation of the projected business rate financial growth as set out at paragraph 2.4 of report CFM484
2. Approve the changes to earmarked reserves as set out at paragraph 2.7 of report CFM484
3. Approve that the utilisation of the Invest to Save reserve be delegated to the Cabinet Member for Finance in consultation with the Council’s Section 151 Officer
4. Approve that the utilisation of the property maintenance reserve and the ICT reserve be delegated to the Cabinet Member for Business Transformation and Commissioning in consultation with the Council’s Section 151 Officer
5. Approve the Budget change for the cinema development complex from £5.4m to £6.28m to include the fit out changes necessary for the Technology and Innovation Centre

6.    Approve the Greater Lincolnshire Local Enterprise Partnership funding offer of £2m subject to agreement of the funding conditions to be delegated to the Cabinet Member for Communities, Health, Wellbeing and Skills