Apologies for absence were received from Councillors Greenslade and Martins.

There were no disclosures of interest.

The minutes of the meeting held on 16 January 2013 to be submitted and signed.  (All minutes are available on the Council’s website.)

The minutes of the meeting held on 16 January 2013 were submitted and signed.

The report provides an update on Property Services since the presentation given in November 2011.  

The Panel received a report of the Head of Legal and Property Services providing a follow up to the briefing given to Budget Panel in November 2011.  The Head of Legal and Property Services highlighted the current work being carried out by the service.

Charter Place

The Chair asked how the current income from Charter Place would be protected following the transfer of the site to Intu.

The Property Section Head advised that Intu, the new name for Capital Shopping Centres, would pay a fixed rent of £1.8 million.  This would be more than the current rental income.  The income would be protected during the redevelopment phase.

Following a further question from the Chair, the Property Section Head advised that he did not have the exact current vacancy levels.  The Team had managed Charter Place, having been aware of the redevelopment of the site for a number of years.  Gradually more units would become vacant in order for it to be ready for redevelopment.  Tenants were being kept informed.  One or two tenants had served their break notices as they did not want to be part of the new development.  Currently there were a number of short term leases with retailers ranging from national companies to local traders.  When the site was transferred to Intu the Council would receive one payment for the whole of the site rather than a number of payments from each shop tenant.  The rent would be paid quarterly.

The Head of Strategic Finance and Shared Services advised that the extra income would not show in the Council’s accounts until the site had been transferred.

Following questions from Councillor Rackett, the Property Section Head confirmed that the Council’s total rental income from its property portfolio was approximately £6 million and that Charter Place was one part of that.

In response to a question from Councillor Taylor regarding future rental payments after the redevelopment, the Property Section Head advised that the base rent stayed the same and was not linked to inflation.  There was a 7% top up, which covered long term growth.

With regard to tenants who owed rent to the Council, the Property Section Head advised the portfolio was proactively managed.  Each unit was considered individually depending on a range of circumstances.  In some circumstances it was better to allow a tenant to remain, even when there were arrears, rather than seek possession, especially if there were no other prospective tenants showing an interest in the property.  This avoided the Council having to pay empty property rates in addition to getting no income.

Following a request from Councillor Khan, the Head of Legal and Property Services advised that she would provide Members with the list of assets held by the Council.

Ascot Road

Following two questions from the Chair, the Property Section Head advised that the capital receipt from Morrisons would be in the region of £3 million.  There was the possibility of receipts from other parts of the land.  The timescale  ...  view the full minutes text for item 42.

Report of the Head of Strategic Finance and Shared Services

The Panel is asked to consider the Finance Digest as at the end of period 10.

The Panel received a report of the Head of Strategic Finance and Shared Services incorporating the latest edition of the Finance Digest as at the end of January (period 10).

Councillor Rackett referred to his amendment to Council regarding discretionary rate relief.  He noted that the Borough Council did offer this relief to businesses.  He suggested that the Panel should be given a briefing on discretionary rates relief, including how the rules were applied and whether it was possible to increase the fund.

RESOLVED –

1.         that the Finance Digest as at the end of period 10 be noted.

2.         that Budget Panel receives a briefing on discretionary rates relief in the new Municipal Year.

The Panel is asked to note the work carried out during 2012/13 and the dates for the 2013/14 Municipal Year.

The Panel received the latest version of the work programme for 2012/13.  Members were asked to note the programme and put forward suggestion for the new Municipal Year.

The Committee and Scrutiny Officer advised that she would include the suggestion agreed on the previous item.  Councillor Rackett asked that all Members were invited to attend the meeting when discretionary rates relief was discussed. 

The Chair commented that as part of the discussion about the Controlled Parking Zones the Panel had asked for a breakdown of income.

Councillor Rackett confirmed that this information had been presented to the Outsourced Services Scrutiny Panel.  The Committee and Scrutiny Officer agreed to circulate the information to the Panel.

Councillor Khan suggested that the Panel might wish to look at rents received for properties owned by the Council.

Councillor Rackett advised that he had put forward a scrutiny suggestion to review the Property Service and that information could be pursued as part of that review.  It could include investigation into rent holidays and whether they were applied fairly.

The Committee and Scrutiny Officer confirmed that the scrutiny suggestion would be included on the agenda for Overview and Scrutiny Committee.  The agenda would include the response from the Head of Legal and Property Services, who had advised that the service would be unable to support a review at the current time due to the current workload, which had been highlighted earlier in the meeting.  Overview and Scrutiny Committee would be given all the information and would need to decide whether it wanted to set up a Task Group.

The Chair stated that he felt the Panel had worked fairly through the year.  It had made recommendations to Cabinet which had been accepted.  He thanked Members for their contributions and the lively debates that had taken place.

RESOLVED –

that the work programme be updated according to Budget Panel’s suggestions.

Members are asked to review the Panel’s contribution to the 2011/12 Annual Scrutiny report and consider if there are any changes they would wish to be incorporated into the 2012/13 report.

Members received a copy of Budget Panel’s contribution to the 2011/12 Annual Scrutiny Report. 

The Committee and Scrutiny Officer advised that the extract had been included as an example and asked whether Members had any suggestion regarding the format.  She assured Members that they would be provided with a draft of Budget Panel’s contribution prior to it being included in the final report, which would be presented to Council in July.

RESOLVED –

that the draft of Budget Panel’s contribution to the Annual Scrutiny Report 2012/13 be circulated to the Panel Members prior to publication.