Issue - meetings

Report of Head of Strategic Planning and the Economy

Purpose of report

A)              To seek Council approval, subject to a positive ballot, for:

a.         Cherwell District Council to subsidise part of the annual costs of collecting the Levy on behalf of the BID within a budget ceiling for a maximum five-year period and for the Chief Financial Officer to make the appropriate arrangements;

b.         Cherwell District Council to provide a bridging loan to the BID to support its establishment and for repayment to occur within a three-year period and for the Chief Financial Officer to make the appropriate arrangements.

c.         Cherwell District Council to meet the costs of creating the BID Levy collection system and for the Chief Financial Officer to make the appropriate arrangements.

Recommendations

The Executive recommends to Council that a number of decisions are taken to prepare for the creation of the Banbury Business Improvement District (BID), subject to a positive ‘yes’ ballot of businesses. It is recommended: 

1)    That, subject to a positive ‘yes’ ballot of businesses and approval of budgets by Full Council, authority be delegated to the Chief Finance Officer in consultation with the relevant Lead Member to meet the actual one-off capital cost, estimated to be £20,000 to create the necessary collection system.

2)    That, subject to a positive ‘yes’ ballot of businesses and approval of budgets by Full Council, authority be delegated to the Chief Finance Officer in consultation with the relevant Lead Member to subsidise a proportion of the annual revenue costs to collect the BID levy for a maximum period of five years of £9,000 a year.

3)    That, subject to a positive ‘yes’ ballot of businesses and approval of budgets by Full Council, authority be delegated to the Chief Finance Officer in consultation with the relevant Lead Member to provide a bridging loan of up to £50,000 to the Banbury BID to cover the set-up, operational and project costs in its start-up phase to be entirely repaid to the Council within three years. The loan would be subject to an appropriate legal agreement being entered into to govern the drawdown loan facility and all financial requirements being satisfied.

Resolved

(1)          That, subject to a positive ‘yes’ ballot of businesses authority be delegated to the Chief Finance Officer in consultation with the relevant Lead Member to meet the actual one-off capital cost, estimated to be £20,000 to create the necessary collection system.

(2)          That, subject to a positive ‘yes’ ballot of businesses authority be delegated to the Chief Finance Officer in consultation with the relevant Lead Member to subsidise a proportion of the annual revenue costs to collect the BID levy for a maximum period of five years of £9,000 a year.

(3)          That, subject to a positive ‘yes’ ballot of businesses and approval of budgets by Full Council, authority be delegated to the Chief Finance Officer in consultation with the relevant Lead Member to provide a bridging loan of up to £50,000 to the Banbury BID to cover the set-up, operational and project costs in its start-up phase to be entirely repaid to the Council within three years. The loan would be subject to an appropriate legal agreement being entered into to govern the drawdown loan facility and all financial requirements being satisfied.

The Head of Strategic Planning and the Economy submitted a report to seek Council approval, subject to a positive ballot, for Cherwell District Council to subsidise part of the annual costs of collecting the Levy on behalf of the Banbury Improvement District (BID) within a budget ceiling for a maximum five-year period and for the Chief Financial Officer to make the appropriate arrangements; for Cherwell District Council to provide a bridging loan to the BID to support its establishment and for repayment to occur within a three-year period and for the Chief Financial Officer to make the appropriate arrangements; for Cherwell District Council to meet the costs of creating the BID Levy collection system; and, for the Chief Financial Officer to make the appropriate arrangements.

Resolved

(1)          That, subject to a positive ‘yes’ ballot of businesses authority be delegated to the Chief Finance Officer in consultation with the relevant Lead Member to meet the actual one-off capital cost, estimated to be £20,000 to create the necessary collection system.

(2)          That, subject to a positive ‘yes’ ballot of businesses authority be delegated to the Chief Finance Officer in consultation with the relevant Lead Member to subsidise a proportion of the annual revenue costs to collect the BID levy for a maximum period of five years of £9,000 a year.

(3)          That, subject to a positive ‘yes’ ballot of businesses and approval of budgets by Full Council, authority be delegated to the Chief Finance Officer in consultation with the relevant Lead Member to provide a bridging loan of up to £50,000 to the Banbury BID to cover the set-up, operational and project costs in its start-up phase to be entirely repaid to the Council within three years. The loan would be subject to an appropriate legal agreement being entered into to govern the drawdown loan facility and all financial requirements being satisfied.