Papers despatched to members via cabinet agenda
Minutes:
5.1 The chair expressed her dissatisfaction with the way this item had been processed through the decision-making system. She explained to the committee that in her position of chair she was being asked to waive the call-in process. Jeremy Pilgrim, Head of Property, explained that the need for confidentiality had prevented the item being placed on the Forward Plan. Duncan Whitfield, Strategic Director of Finance, added that consideration had been given to how to process the item since the council had first learned that the building was coming onto the market. Councillor Richard Livingstone, cabinet member for finance, resources and community safety was grateful that the chair had agreed to a pre-scrutiny of the item before it was considered by cabinet the following day. There was a small window in which the council could act otherwise it would lose a significant opportunity. Councillor Livingstone was convinced that there was the possibility of a good deal for the council, in terms of saving revenue and acquiring a capital asset.. He pointed out that the District Auditor’s letter suggested that there was a sound basis for the council making its decision.
5.2 In response to questions from members, the strategic director explained the basis for internal borrowing. This used cash in hand, arising from funds set aside as reserves and balances, rather than new external debt. Members asked if the strategic director was confident that this would not limit the council. He stated that he was certain that it would not impinge on any existing programmes in place and that if necessary internal borrowing could always be swapped for external borrowing in the future. In response to further questions, the strategic director confirmed that the council could re-pay the borrowing sooner than the proposed forty years but reminded the committee that currently cash reserves earned very little.
5.3 At 7.20pm it was moved, seconded and resolved that the committee go into closed session.
5.4 The head of property gave an estimate of the likely value of the property over ten years and explained the process in respect of VAT payment. The strategic director clarified current levels of reserves and that the council could re-balance around an appropriate level. He also confirmed his satisfaction with the work of Grant Thornton. In response to questions, the strategic director and Councillor Livingstone confirmed that acquisition of the building would dispense with restrictive covenants and allow the best possible utilisation of space, including the opportunity for greater community use.