Issue - meetings

The Members were asked to consider the recommendations of the Executive in respect of the report on the Medium Term Financial Strategy.  The Strategy had been adopted in October 2018 and the report considered by the Executive had provided an update on the outlook, extending the forecast to 2023/24.  Councillor Azad, Portfolio Holder for Corporate Financial Planning and Policy, introduced the recommendation to the Council.

The Council discussed a number of areas covered by the report including Brookwood Cemetery, Victoria Square and valuations in general.  The points were addressed by Councillor Azad before the Members were asked to agree the recommendations before them.

RESOLVED

That  (i)    the Medium Term Financial Strategy (MTFS) report be approved; and

          (ii)   subject to appropriate due diligence, Brookwood Cemetery be acquired by the Council to be operated as a direct Council service.

Reporting Person – Leigh Clarke

Following approval of the current Medium Term Financial Strategy (MTFS) by Council in October 2018, the Executive received a report which provided an update on the outlook, extended the forecast to 2023/24 and considered the strategy in place to achieve a sustainable medium term position whilst progressing the Council’s service and Investment Programme ambitions.  The Portfolio Holder for Corporate Financial Planning and Policy, Councillor Azad, reported that there remained some uncertainty concerning the government funding position for 2020/21 and beyond.

Councillor Azad explained the proposal set out in the report for Brookwood Cemetery to be acquired by the Council and operated as a direct Council service.  The Executive noted that the proposal would save some £100,000 per annum of irrecoverable VAT.  It was confirmed that the proposed acquisition would not affect how the service currently operated.  Officers advised that the proposal would also bring operational benefits as a result of Cemetery staff becoming in-house Council employees.

Following a question regarding valuations, the Executive was advised that valuations fluctuated over time depending on the local, national and global economy.  However over time, it was expected that property would hold value and increase as investment in the Town Centre increased.  It was highlighted that, in the short-term, the Council would receive rental income from property purchases.

Regarding Gateway at paragraph 6.7 of the report, the Executive was informed that the units currently owned by the Council, which included some community assets, would be re-provided within the Gateway development.  It was noted that the Council would have the right to purchase those assets in Gateway in order to ensure its commercial rents income stream was retained.

Members also discussed project slippage and margins on investments.

REcommendED to Council

That  (i)    the Medium Term Financial Strategy (MTFS) report be approved; and

          (ii)   subject to appropriate due diligence Brookwood Cemetery be acquired by the Council to be operated as a direct Council service.

Reason:   The decision is sought to agree the framework for Officers to develop further proposals for consideration, in due course, by the Council to ensure the medium term financial stability of the Council in the context of its objective to support growth and to maintain services for local people.