Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
53.1 Katherine Steel, Assistant Director for Corporate Resources introduced report MOS/1/24 and outlined the changes in the report layout. There was no longer a Medium Financial Term report, as this was incorporated into the general budget report
53.2 The Chair updated Members on points raised the previous Cabinet meeting:
· The Needham Lake Visitor Centre was not included in the budget and would be funded by the business rates capital budget;
· Council Tax Care Leavers Relief would be funded equally between by Suffolk County Council and Mid Suffolk District Council, and would be a continued relief;
· The Locality Budget was £250K and would be divided into 34 parts. Mid Suffolk would receive 1/34 of the budget.
· The significant risk register was updated on Connect.
53.3 Councillor Hadingham ask for clarification on the net income for the proposed investment of £25m and referred to page 21, 8.20 and page 29, line 13.
53.4 Councillor Field expressed concern for the proposed £25m investment for CIFCO and that the investment was outside the District. He was also concerned regarding the risk as some of the investments were in the retail market.
53.5 Councillor Welham suggested that additional risk management and more explanation round the issues regarding the economic conditions becoming worse should be included.
53.6 He also asked for clarity for the returns on the loans in Table 7 and 8, page 19 to 20.
53.7 The Assistant Director – Corporate Resources responded to the questions and said that paragraph 8.20 was net income.
53.8 In repose to the investments she referred to the CIFCO Board of Directors and said that currently investments were being made into retail.
53.9 The Cabinet Member for Finance explained that economic downturn would be an issue if the Council decided to sell assets invested by CIFCO as the Council received income from the rents. However, the investments were made for a minimum period of 10 to 15 years, which was historically considered a good capital investment period.
53.10 Councillor Welham suggested a change to the wording for the risk assessment and that this required more explanation of the risks.
53.11 The Cabinet Member for Finance agreed.
53.12 Councillor Gibson-Harries suggested a short information piece which could be made available for Parish Council meetings.
53.13 The Assistant Director responded to Members questions including:
· Bullet point 7.6 Risk Management covered a ranger of areas including Gateway 14, the previous HQ sites, Stowmarket Middle School, Paddock Site in Eye and investment in the commercial market;
· Bullet point 8.10, c), business rates funding was uncertain after 2019/20 and the estimate had been prudent. The business rate base line had been moving upwards.
· Table 7, page 19 staff salary was detailed further in the Budget book, page 31
· The surplus in the General Fund for housing was ringfenced for Homelessness.
53.14 Members debated the budget including business rates and that the District had a lot of small and medium companies. The current market for retail could have an effect on the business rate.
53.15 Members debated the possible information note to parish Councils for CIFCO and the Chief executive added that explaining the purpose of CIFCO was relatively easy, but it would a challenge to clarify the complicated reason for the investments.
53.16 Some Members agreed and considerations as to how it would be possible to choose topics to include in a note for Parish Councils was debated further.
53.17 Councillor Welham thanked officers for a prudent budget, which was modest through out. CIFCO was a long-term investment strategy to maintain reasonable levels of Council Tax.
53.18 Members was provided with information to answer queries at Parish Council level.
53.19 Members agree that comments from the meeting should be delivered to Cabinet.
By a unanimous vote
It was RESOLVED: -
1.1 That the Mid Suffolk Overview and Scrutiny Committee endorse Recommendations 3.1 to 3.4.
1.2 That the comments made by the Committee at the meeting be considered by Cabinet.
Publication date: 20/12/2019
Date of decision: 17/01/2019
Decided at meeting: 17/01/2019 - Mid Suffolk Overview and Scrutiny Committee
Accompanying Documents: