Purpose

To consider an update to the
Partnership agreement.

Decision

  The Cabinet:

 

1.1         
Subject to the receipt of external
assurance that the proposed Head of Terms and lease provides Best
Value to the Council, approved and delegated authority to the three
Council LLP Board Representatives (Leader of the Council, Chief
Executive and Chief Operating Officer) to agree on behalf of the
Council that the LLP enters a lease with the tenant. The delegation
is based on the Head of Terms included in the confidential report,
is subject to Council approving recommendation 2.2 of the Cabinet
report and resulting financial implications for the Council
remaining within Approved Budgets.

1.2      Agreed
and recommended to Full Council to update the Medium-Term Financial
Strategy:
 

•      
To increase the budget in the Capital Programme by
£1,700,000 to fund the capital contribution contained within
the Head of Terms. The plan is for the borrowing need created by
the capital contribution to initially be funded through internal
borrowing.
 

•      
Then to:
 

A.   
Either allocate the first £1,700,000 of
capital receipts generated from the sale of land in the Birmingham
Road Site to fund the capital contribution and negate the creation
of borrowing need or;
 

B.   
In the event the capital receipt does not reach the
£1,700,000 level, or Council does not approve its allocation
to this project, to approve the identification of budgetary savings
(to maintain the level of Approved risk ‘headroom’)
equivalent to the Central Scenario annual Capital Financing Costs
by ensuring no increase in the funding gap.
 
·      
To continue the approach that the MTFS is based on a
neutral (no surplus or deficit or capital receipts are included)
budget position until more informed financial projections are
provided through the Business Plan. Any future changes following
receipt of the Business Plan will be reported in line with the
Council’s budget monitoring and any budget approvals will be
in line with the budget framework