Issue - meetings

The material relevant to this item can be found on pages 5-13 of the Cabinet agenda pack for 7 July 2020.

The following recommendations were made to Council:

                      I.         That the minimum level of reserves be reduced to £4m.

                    II.         That up to £8,070,000 be released from reserves to address the in-year impact of the pandemic.

                   III.         That the Council should work towards achieving a balanced budget over the next 5 years, using reserves in the intervening years to help balance the budget.

                  IV.         That officers continue to pursue income generating initiatives, where there is a sufficiently robust business case, as part of the recovery process.

Cllr Wilding was invited to introduce the item.

Cllr Wilding moved the recommendations which were seconded by Cllr Lintill.

Cllr O’Kelly proposed an amendment to recommendation 1v to read:

The Council should prioritise the identification and development of new income generation ideas.

The proposal was seconded by Cllr Brown.

A number of members supported the amendment which reverted the recommendation back to that made by the Corporate Governance and Audit Committee. Some members also discussed striking the right balance between generating income and maintaining reserves.

In response to a request for clarification Mrs Hotchkiss confirmed that Chichester Festival Theatre receives £187,000 per annum in its current funding agreement with the council and Pallant House Gallery receives £130,000 per annum. Both agreements currently run until 2022.

Members voted on the amendment put forward by Cllr O’Kelly which was not carried.

Members then voted on the officers recommendations which were carried.

RESOLVED

1.            That the minimum level of reserves be reduced to £4m.

2.            That up to £8,070,000 be released from reserves to address the in year impact of the pandemic.

3.            That the Council should work towards achieving a balanced budget over the next 5 years, using reserves in the intervening years to help balance the budget.

4.            That officers continue to pursue income generating initiatives, where there is a sufficiently robust business case, as part of the recovery process.

The Cabinet is requested to consider the report and make the following recommendations to Council:

                      I.         That the minimum level of reserves be reduced to £4m.

                    II.         That £8,070,000 be released from reserves to address the in-year impact of the pandemic.

                   III.         That the Council should work towards achieving a balanced budget over the next 5 years, using reserves in the intervening years to help balance the budget.

*RECOMMENDED TO COUNCIL:

                      I.         That the minimum level of reserves be reduced to £4m.

                    II.         That up to £8,070,000 be released from reserves to address the in-year impact of the pandemic.

                   III.         That the Council should work towards achieving a balanced budget over the next 5 years, using reserves in the intervening years to help balance the budget.

                  IV.         That officers continue to pursue income generating initiatives, where there is a sufficiently robust business case, as part of the recovery process.

Cllr Wilding introduced the item. Cllr Dignum was then invited to outline the recommendations made by the Corporate Governance and Audit Committee which were as follows:

That the Corporate Governance and Audit Committee:

1)    Recommend to Cabinet that £8,070,000 be released from reserves to meet the in-year cost of the pandemic.

2)    Recommend to Cabinet that in the current circumstances the minimum level of reserves be reduced from £6.3m to £4m.

3)    Recommend to Cabinet that the Council should work towards achieving a balanced budget over the next 5 years, using reserves to help balance the intervening years.

4)    Recommend to Cabinet that the Council should prioritise the identification and development of new income generation ideas.

The Chair explained that recommendation 1 would be amended to read ‘up to £8 million’.

Cllr Wilding added that recommendation 4 from Corporate Governance and Audit Committee should be slightly reworded and then added to the Cabinet’s recommendations to Council. 

The Cabinet were supportive of the recommendations including the additions referenced above.

Mrs Shepherd clarified that the projects contained in the council’s Capital Programme have only been put on hold until the financial picture becomes clearer.

In a vote the Cabinet made the following recommendations to Council:

RECOMMENDED TO COUNCIL:

                      I.         That the minimum level of reserves be reduced to £4m.

                    II.         That up to £8,070,000 be released from reserves to address the in-year impact of the pandemic.

                   III.         That the Council should work towards achieving a balanced budget over the next 5 years, using reserves in the intervening years to help balance the budget.

                  IV.         That officers pursue income generating initiatives where robust business cases can be demonstrated.