Agenda item

To consider and decide on the recommendations as set out in the associated report. 

RESOLVED –

1. That the in-year budget revisions and the direction of travel in setting the budget 2023/24 with the aim of rebalancing the council’s finances over the medium-term be approved.
2. That the Head of Economic Development and Property in consultation with the Portfolio Holder for Finance and Performance be given delegated authority to commence listing, for potential disposal or lease, of the following surplus assets, Mount Pleasant Avenue Car Park, Great Hall Yard Car Park, the Gateway and Land at Warwick Park be approved.
3. That authority be delegated to the Head of Finance, Procurement and Parking in consultation with the Portfolio Holder for Rural Communities (Deputy Leader) to produce Terms of Reference for a Community Support Fund be approved.
4. That the virement of £2.5m from the Town hall conversion budget to the Asset Acquisition budget to further the economic development of the town centre through the acquisition and/or redevelopment of property be approved.  And that delegated authority be given to the Director of Finance, Property and Development to negotiate and agreed terms to entre into contracts utilising this budget in consultation with the Monitoring Officer and the Cabinet Members for Finance and Performance and Tunbridge Wells Town Centre and Local Areas be approved. 
5. That delegated authority be given to the head of Legal Partnership to negotiate and complete all necessary agreements, deeds and documents arising or ancillary to the purchases and/or refurbishments on terms negotiated and agreed be approved.

REASON FOR DECISION: To deliver a sustainable budget that would address and rebalance the Council’s finances over the medium term.

Councillor Andrew Hickey, Cabinet Member for Finance and Performance provided a short summary of the discussion that took place at the Cabinet Advisory Board and then introduced Lee Colyer, Director of  Finance, Policy and Development who presented the report as set out in the agenda.

Discussion and questions from Members included the following:

-       The Council set a figure of £4m as the minimum level of Reserves that it should hold. 

-       This figure of £4m was a judgement made by the Director of Finances based around the Council’s risk and the value of the Council’s services it needed to provide.

-       On an annual basis the Council provided £65m worth of services, half of which were statutory services.  Statutory services were those that the Council must provide by law.  It was therefore important that the Council had funds set aside to ensure that those statutory services continued to be delivered.  Reserves were also there to fund the Capital programme that would ensure the Council had the assets from which to deliver those services from. 

-       In comparison to other Councils, this Council was in a relatively strong position.  As such there were options available to Members as to the level of assets it had.  In addition the Council had no external debt.

-       The level of usable Reserves had reduced significantly in the last year and this trajectory would continue unless it was addressed now. 

-       It was unclear what the state of the economy would be in six months’ time so it would not be prudent to delay taking action.  The crisis should be addressed now.

-       The current deficit for this year was £944k.  If this wasn’t addressed now, the deficit by 2026 would have increased to £3.5m 

RESOLVED –

1. That the in-year budget revisions and the direction of travel in setting the budget 2023/24 with the aim of rebalancing the council’s finances over the medium-term be approved.
2. That the Head of Economic Development and Property in consultation with the Portfolio Holder for Finance and Performance be given delegated authority to commence listing, for potential disposal or lease, of the following surplus assets, Mount Pleasant Avenue Car Park, Great Hall Yard Car Park, the Gateway and Land at Warwick Park be approved.
3. That authority be delegated to the Head of Finance, Procurement and Parking in consultation with the Portfolio Holder for Rural Communities (Deputy Leader) to produce Terms of Reference for a Community Support Fund be approved.
4. That the virement of £2.5m from the Town hall conversion budget to the Asset Acquisition budget to further the economic development of the town centre through the acquisition and/or redevelopment of property be approved.  And that delegated authority be given to the Director of Finance, Property and Development to negotiate and agreed terms to enter into contracts utilising this budget in consultation with the Monitoring Officer and the Cabinet Members for Finance and Performance and Tunbridge Wells Town Centre and Local Areas be approved. 
5. That delegated authority be given to the head of Legal Partnership to negotiate and complete all necessary agreements, deeds and documents arising or ancillary to the purchases and/or refurbishments on terms negotiated and agreed be approved.

REASON FOR DECISION: To deliver a sustainable budget that would address and rebalance the Council’s finances over the medium term.