Agenda and minutes

To receive any apologies for absence.

There were no apologies.  Councillor Mrs Soyke was not present.

To receive any declarations of interest by members in items on the agenda. For any advice on declarations of interest, please contact the Monitoring Officer before the meeting.

Councillor Hickey declared an interest in Agenda Item 10 – Grant of Lease to Enable Funding – Bayham Sports Pitches.  Councillor Hickey was on the Committee of Foresters Football Club and would exclude himself from this item.

For transparency reasons, Councillor Chapelard stated that he was a parent at Foresters Football Club (Agenda Item 10).

To note any members of the Council wishing to speak, of which due notice has been given in accordance with Council Meeting Procedure Rule 18, and which items they wish to speak on.

There were no visiting Members.

To approve the minutes of a previous meeting as a correct record. The only issue relating to the minutes that can be discussed is their accuracy.

Members reviewed the minutes.  No amendments were proposed.

RESOLVED – That the minutes dated 10 November 2020 be approved as a correct record.

To note forthcoming items as set out in the Forward Plan.

Members considered the Forward Plan.  No amendments were proposed.

RESOLVED – The Forward Plan as at 22 December 2020 be noted.

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.

Lee Colyer, Director of Finance, Policy and Development introduced the report that provided an update to the budget projections for the 2021/22 budget.

Discussion and responses to Members questions included the following:

-       Since approval of the draft budget, Government had set out the provisional Local Government Finance Settlement which confirmed the Council Tax threshold for this Council of £5 over the current years rate. 

-       Government expected the Council to increase Council Tax by £5 in their assessment of the Councils resources that would be available to deliver local services.

-       The final settlement would be confirmed by Parliament in February.

-       A final allocation of New Homes Bonus of £454k would be received, which would help reduce the use of Reserves in balancing the Revenue Budget. 

-       The Government had stated there would be a replacement to the New Homes Bonus and had described the new scheme as ‘a new, more targeted approach that rewards Local Authorities where they are ambitious in delivering the homes we need’.

-       In terms of Business Rates, the system that rewarded Local Authorities that attracted investment into their area and delivered growth would continue for a further year.  TWBC would continue to be part of the Kent Business Rates Pool.

-       TWBC continued to support residents and businesses throughout the pandemic.  This had had a dramatic effect on the Council’s finances which was unlikely to improve in the foreseeable future.

-       Unemployment and Collection  Rates, which were being assisted by national support packages  were holding up better than anticipated.

-       £1.935m would still be required from Reserves to fund  the provision of local services for next year.  This was an improvement on the £3m identified in the draft budget.

-       The Council’s assets would still require substantial investment, with additional growth project funding of £2.8m.  This was in addition to rolling forward the existing Capital Programme.

-       The report included a table (A List) of schemes which for health and safety reasons or where external funding was in place would require funding.

-       The report also included a B List of £2m worth of works which was required to keep the Town Hall, Assembly Hall, Car Parks and Leisure Centres operational. 

-       This was in addition to the £1m a year the Council spent on planned and responsive repairs to its assets. 

-       The temporary use of Reserves and the additional Capital Schemes would reduce the level of Reserves held by the Council.

-       Reserves could only be used once.  The cost of providing existing services would be greater than the level of income raised each year.  It would therefore be necessary to act, to bring the Revenue Budget back into balance without reliance on Reserves from April 2022. 

-       The drain on Reserves was further exacerbated by the unsustainable costs of existing assets.  A review would be required to identify those that had sufficient demand and purpose to continue to invest, and those that should be sold or repurposed.

-       When  ...  view the full minutes text for item FG27/20

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.

Lee Colyer Director of Finance, Policy and Development presented the report that formed part of the Council’s policy and strategy documents that provided guidance on the Council’s capital programme and the use of its capital resources.

Discussion and responses to Members questions included the following:

-       The Capital Strategy had been updated to reflect the emerging Five-Year Plan, also the local Climate Emergency and the national emergency around Covid-19.

-       There was no intention included in the report to diminish the Council’s responsibility and commitment towards Climate Change.  The report sought to make clear the financial reality of the costs of undertaking projects at a time when Council reserves were much depleted.

-       When Government commenced cuts to Local Authorities in 2010 there was a move by some Councils to invest in commercial properties, and particularly investments outside their areas. Government had now excluded any loss of rental income from such commercial properties from the sales, fees and charges compensation scheme. 

-       Borrowing for investment purposes was no longer backed by the Government.  However, Local Authorities were still able to invest and to access borrowing from a wide variety of other sources.

-       The change in criteria to access the PWLB would have no impact  on TWBC’s plans.  The PWLB would still be available to the Council if it wanted to undertake any redevelopment, repurposing or to deliver economic development or wellbeing benefits for the Borough. 

RESOLVED – That the recommendations to Cabinet as set out in the report be supported.

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.

Lee Colyer, Director of Finance, Policy and Development introduced the report that formed part of the Council’s financial management arrangements that ensured a framework for decisions was in place.

Discussion and responses to Members questions included the following:

-       There were two main changes from last year.  The authorised limit for external debt had been reduced back to £20m and the further reduction to interest rates from the PWLB. 

-       The Council invested in whole sale money markets and would take action should there be a risk of moving into negative interest.

-       In addition, the Council’s contract with Lloyds Bank included certain protections. 

-       Most organisations avoided retendering their banking contracts.  However, TWBC went out to tender about 7-8 years ago and was able to successfully negotiate a much better deal.

RESOLVED – That the recommendations to Cabinet as set out in the report be supported.

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.

John Antoniades, Estates Manager introduced the report that recommended the grant of a lease for Packs in the Wood to Tunbridge Wells Property Holdings Ltd from TWBC.

Discussion and questions from Members included the following:

-       To date 19 residential units were currently leased to Tunbridge Wells Property Holdings Ltd (TWPH Limited).

-       The report recommended that Packs in the Wood be added to the list.

-       The building was currently being refurbished, with the work due to finish in the second week in February.

-       Subject to approval by Cabinet, TWBC would  then grant the lease to TWPH Limited.  Although difficult to be precise, TWBC would hope to secure a tenant within 3-6 weeks of it being advertised.

-       TWPH Limited gave the Council more flexibility in dealing with its property portfolio including being able to take advantage of Assured Shorthold Tenancies (ASTs) which optimised the open market rent that the Council could obtain. 

-       The Council constantly looked for opportunities to transfer suitable properties to TWPH Limited.  However it still retained a proportion of its residential stock to use for emergency housing etc. Regulated tenancies were not suitable for transfer into TWPH Limited.

-       The Council would not be loaning TWPH Limited any money in relation to this lease.

-       There was no right to buy provision for properties held by TWPH Ltd.

A recorded vote was requested:

Members who voted in favour of the recommendations: Councillors Dawlings (Chairman), Scott (Vice Chairman), Holden, Simmons, Reilly, Stanyer, Chapelard, Hickey, Hayward (9).

Members who voted against the recommendations: None

Members who abstained: Councillor Everitt (1).

RESOLVED – That the recommendations to Cabinet as set out in the report be supported.

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.

Max Horgan, Estates Surveyor introduced the report that sought approval for the letting of the land at Bayham Road.

Discussion and responses to Members questions included the following:

-       Tunbridge Wells Foresters Football Club had approached TWBC with a request for a 25 year lease for the Bayham Sport Pitches site.

-       The football club currently hired these football pitches on an ad hoc basis.

-       The Bayham Sports site was in need of refurbishment and improvements including, changing facilities and drainage.

-       The lease could include a break clause provision that would allow say a 6 month notice period by either party should there be a change in circumstances. 

RESOLVED – That the recommendations to Cabinet as set out in the report be supported.

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.

John Antoniades, Estates Manager introduced the report that provided a management strategy for the Council’s property assets for 2021/22.

Discussion and responses to Members questions included the following:

-       The Asset Management Plan was currently out to public consultation.

-       The consultation period ended on 22 January 2021.

-       The figures would be subject to minor amendment until Cabinet on 4 February 2021.  In particular, sales listed on page 155 of the report were projected so whilst Hornbeam had been sold, the land at Sychem Lane was scheduled to complete this financial year, but had not yet completed.

-       Once the Amelia Scott project had been completed the Council would need to undertake a complete revaluation.

-       The Council, under no circumstances would look to sell assets no matter their worth (‘Fire Sell’).  The disposal of any asset would have to go through due process.  The Council was not allowed to sell any asset below its value.

-       The maintenance cost for the Tunbridge Wells Sports Centres had been reviewed recently.  The Council had been careful to identify the full cost of any potential liabilities should there be any changes to the current contract with Fusion.

RESOLVED – That the recommendations to Cabinet as set out in the report be supported. 

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.

John Antoniades, Estates Manager introduced the report that informed of the property transactions completed under delegated authority for the period 1 July to 31 December 2020.

Discussion and responses to Members questions included the following:

-       During the second 6 months of the calendar year the Council had disposed of no property assets.

-       11 new leases and licences were granted creating a net revenue increase of £29,207.45 per annum.

-       5 rent reviews were completed securing a net annual rental increase of £2,870.67.

-       A clawback payment of £45,798.66 was secured for Red Oak, Hawkhurst, a site previously sold by TWBC by auction.

-       5 new Assured Shorthold Tenancies were granted.

-       Due to the pandemic a number of TWPH Limited AST renewals were placed on hold.  These were now being renewed.

-       The collection of rents due to Covid-19 had been challenging for the Council.  Some of the arrears had now been cleared, the others were under control and being dealt with on a case by case basis.

To note, the matter was decided in taking the exempt information set out in the Agenda as read.

RESOLVED – That the recommendations to Cabinet as set out in the report be supported.

To consider any other items which the Chairman decides are urgent, for the reasons to be stated, in accordance with Section 100B(4) of the Local Government Act 1972.

There was no urgent business.

To note that the date of the next scheduled meeting is Tuesday 16 February 2021 at 6.30pm. 

The date of the next meeting was scheduled for Tuesday 16 February 2021 at 6:30pm.