Issue - meetings

Hawkwood Road:

RECOMMENDED to Council that

a) Approval of an increase in the authorised borrowing limit of the Council to accommodate the £6.1m in the HRA for social rent/shared ownership and £3.2m in the general fund of prudential borrowing for Option 1 of this scheme and the proposal in the business cases for the financing of this debt;

OR

b) Approval of an increase in the authorised borrowing limit of the Council to accommodate the £6.9m in the HRA for social rent/shared ownership of prudential borrowing for Option 2 of this scheme and the proposal if the business cases for the financing of this debt Option 1 cannot be delivered.

(Recommendation c) has been deferred, pending further investigation and due diligence. The recommendation will be brought to a future meeting of Council in due course.)

The Chairman of the Audit and Governance Committee, Councillor M Andrews presented the report on the Hawkwood Road and Housing Delivery Council Newbuild Housing and Acquisition Strategy (CNHAS) and outlined the revised recommendations circulated to all members prior to the meeting.

RESOLVED: - That Council agrees the

(a)           Approval of an increase of £9.3m in the authorised borrowing limit of the Council to accommodate in the HRA £6.1m for social rent/shared ownership and £3.2m in the general fund of prudential borrowing for Option 1 of this scheme and the proposal in the business cases for the financing of this debt; OR

(b)           Approval of an increase of £6.9m in the authorised borrowing limit of the Council in the HRA for social rent/shared ownership of prudential borrowing for Option 2 of this scheme and the proposal of the business cases for the financing of this debt if Option 1 cannot be delivered.

Voting: Agreed with no dissent

To consider and recommend to Council, the 10 December Cabinet reports for Hawkwood Road and CNHAS Harbour Sail acquisition which seeks additional borrowing as part of the proposals.

It is for Audit and Governance to be satisfied that the business cases are robust enough to generate resources to satisfy the associated debt repayments.

PLEASE NOTE Should the Committee wish to discuss the detail of the exempt appendix the Committee will be asked to consider the following resolution to move into exempt session:

“That under Section 100(A)(4) of the Local Government Act 1972, the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in Paragraph 3 in Part I of Schedule 12A of the Act and that the public interest in withholding the information outweighs such interest in disclosing the information.”

The Chief Financial Officer (CFO) introduced a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'B' to these Minutes in the Minute Book.

The Committee was assured that it was not the intention to reduce the Council’s ambitions for housing but to strengthen the governance associated with funding such schemes. The report provided an opportunity for Members to review the proposals for Hawkwood Road and CNHAS Harbour Sail acquisition to ensure they were content that the business cases were robust enough to generate resources to satisfy the associated debt repayments. The Director, Investment and Development, provided an overview of both schemes and gave an update on progress. The borrowing implications for each option were set out in the report. It was noted that Harbour Sail was intended to be used for temporary accommodation to reduce pressure on costly bed and breakfast accommodation.

Members sought assurance on the delivery of the clinical facility referenced in Hawkwood Road Option 1. It was explained that although a GP facility had been considered, this was to be an oral health facility including a training element in collaboration with NHS Dorset. Work with NHS Dorset was progressing well, with rental income now set and a business case being prepared. Members also asked about the risk to the Council in borrowing if grants did not materialise. It was explained that grants were due to be confirmed in the next few months but for added assurance contracts would not be awarded until that time.

A point was raised about the debt ceiling being reduced, in that each business case would have to come to the Council for approval regardless. There was a concern about Harbour Sail in that it was known that the building had issues and had been vacant for some time, but an assurance had been received that the Council was looking at this thoroughly.

It was noted that recommendation b) required amending to correct a typo, the phrase “..in the business cases..” to be replaced by “..if the business cases…”

Hawkwood Road:

RECOMMENDED to Council that

a)    Approval of an increase in the authorised borrowing limit of the Council to accommodate the £6.1m in the HRA for social rent/shared ownership and £3.2m in the general fund of prudential borrowing for Option 1 of this scheme and the proposal in the business cases for the financing of this debt.

Or

b)    Approval of an increase in the authorised borrowing limit of the Council to accommodate the £6.9m in the HRA for social rent/shared ownership of prudential borrowing for Option 2 of this scheme and the proposal if the business cases for the financing of this debt Option 1 cannot be delivered.

CNHAS – Harbour Sail

RECOMMENDED to Council:

c)    Increasing the authorised borrowing limit of the Council

           to accommodate the budget set out in the exempt report at Appendix 1 for the purchase of Harbour Sail.

Voting: Unanimous