Agenda item

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report and explained that the Council’s current Asset Management Plan expired in 2015. He reported that advice had been received from CIPFA to review the approach to Asset Management which would help shape future thinking including the role of members in making decisions and reviewing the performance of the property portfolio. Therefore a more dynamic and purposeful document had been drawn up focused around a small number of clear, forward looking policy objectives.

The Cabinet Member explained that the Asset Management Plan was crucial in making a number of important linkages with the corporate strategy, the medium term financial strategy and with the Cheltenham economic development strategy. The key objective of the asset management policy was to use assets to generate income and cut costs.

The Cabinet Member made reference to the Athey consultant’s report which recently reported on the economic strategy. It highlighted the positive contribution the Cheltenham Development Task Force had made to promoting economic development but more work was required to bring forward more sites for commercial development. This was a key issue for the Council’s asset management.

The Cabinet Member highlighted the new draft terms of reference for the Asset Management Working Group, approved by the group at its last meeting and which would give them a more strategic role in asset management.

The Planned Maintenance Budget of £846 k which represented a substantial investment in the council’s assets was also highlighted by the Cabinet Member. He reported that at the same time a new 10 year planned maintenance programme was being worked up to provide a longer term view about the need for further investment. 

New capital projects were detailed in Appendix 4 of the report. These had been assessed and scored by a panel of officers against the corporate objectives, deliverability, likely costs and return on investment and feedback from the public consultation. The Cabinet Member emphasised that this had not been an easy process and at this stage some of the proposals required more work. High priority would however be given to projects which could attract additional external funding, such as the town hall redevelopment scheme.  This scheme had been most highly rated by the public in the public consultation. He reported that some time ago consultants had been asked to look at how the Town Hall could be improved and updated and a plan had been drawn up to increase capacity of the main hall, improve the flow of people around the building and create new dedicated spaces for events and create new hospitality and catering facilities. He proposed to earmark £2.4 million for this project (£2.2 million from the £8 million capital pot and a further £200 000 still to be found from future capital receipts). He reported that £400k should be made available immediately so that the project could be worked up in enough detail to go forward to potential funders such as the Heritage Lottery Fund and charitable trusts. It was estimated that the total scheme was likely to cost about £10 million, with £7.6 million being supplemented from other funders. The Cabinet Member Finance believed that this project would provide a lasting legacy to the town and its people.

The Cabinet Member Finance talked in general terms about the accommodation strategy which would be discussed later in the meeting. He emphasised that this was not just a freestanding project but an essential part of the Medium Term Financial Strategy to cut costs through organisational change.  In his view it was a practical example of how assets and capital could be used to generate additional income for the Council and opened up the most exciting regeneration opportunity for many years by turning the current offices to new uses and helping to revitalise the town centre. He reminded the meeting that the Council had repeatedly restated its commitment, across party lines, to relocating our offices. For all those reasons it was proposed that £2.5 million from capital be set aside to assist the acquisition of a new building.

In terms of other projects to which it was proposed that funds be allocated or held in reserve, he highlighted the investment in the cemetery and crematorium project which was a necessity both in terms of recent problems with the cremators but also the opportunity to provide a more customer friendly service. Reference was also made to Boots corner improvements to which the Council was committed although the current proposals needed to be rethought if the County Council modified the Cheltenham Transport Plan. Finally, the Cabinet Member referred to the proposal for £300k to be allocated to a new and improved children’s play area in Pittville Park.

The Cabinet Member Finance believed that the vision and implementation of the capital programme would make a lasting difference to the quality of life in the town.

The Leader added that this was an exciting package of potential investment in the town and he looked forward to the debate at the Council meeting.

RESOLVED THAT

1.     the Asset Management Policy (forming part of the Asset Management Plan) at Appendix 2 be approved.

2.     the revised Terms of Reference for the Asset Management Working Group at Appendix 3 be approved.

Council be recommended to :

3.     Approve the Planned Maintenance Programme for 2015/16 at Appendix 5.

4.     Approve the provisional allocation of the receipt of North Place / Portland Street car parks to support key property investment aspirations at Appendix 4.