Issue - meetings

Report of Assistant Director of Finance  & Section 151 Officer,

Purpose of report

To update Executive on the council’s financial position at the end of the August 2024.

Recommendations

The Executive resolves:

1.1         To consider and note the contents of the council’s financial management report as at the end of August 2024 (Appendices 2-4).

1.2            To approve the use of reserve requests (Appendix 5).

1.3         To approve the reprofiling of capital projects beyond 2024/25 (Appendix 1) and the subsequent update to the programme budget for this financial year.

1.4         To approve the reprofiling of £0.393m from future years budget into the 2024/25 capital project for Castle Quay (cost centre 40144), please note this has been reflected throughout the report.

1.5         To note the use of £0.133m from the Digital Futures Programme capital budget (Cost Centre 40326) to progress work on the Robotic Process Automation Pilot.

Resolved

(1)            That the council’s financial management report as at the end of August 2024 be noted.

(2)            That the use of reservse requests, set out at Appendix 5 to the report, be approved.

(3)            That the reprofiling of capital projects beyond 2024/25 (set out at Appendix 1 to the report) and the subsequent update to the programme budget for this financial year be approved.

(4)            That the reprofiling of £0.393m from future years budget into the 2024/25 capital project for Castle Quay (cost centre 40144) be approved.

(5)            That the use of £0.133m from the Digital Futures Programme capital budget (Cost Centre 40326) to progress work on the Robotic Process Automation Pilot be noted.

(6)            That the forecast overspend be noted and Council be recommended to agree an increase in the capital budget for CDC Office Relocation to Castle Quay project by £0.646m.

The Assistant Director of Finance & Section 151 Officer submitted a report to update Executive on the council’s financial position at the end of the August 2024.

Resolved

(1)          That the council’s financial management report as at the end of August 2024 be noted.

(2)          That the use of reserve requests, set out in the Annex to the Minutes as set out in the Minute Book, be approved.

(3)          That the reprofiling of capital projects beyond 2024/25 and the subsequent update to the programme budget for this financial year be approved.

(4)          That the reprofiling of £0.393m from future years budget into the 2024/25 capital project for Castle Quay (cost centre 40144) be approved.

(5)          That the use of £0.133m from the Digital Futures Programme capital budget (Cost Centre 40326) to progress work on the Robotic Process Automation Pilot be noted.

(6)          That the forecast overspend be noted and Council be recommended to agree an increase in the capital budget for CDC Office Relocation to Castle Quay project by £0.646m.

Reasons

The terms agreed are recommended for approval by the Council’s appointed consultant Montagu Evans and will provide relevant evidence to support rent increases in relation to future lease events.

The terms of the new lease to Uniform Express Limited, have been benchmarked against other similar comparable agreements and reflect the best commercial terms available in the marketplace today.  

The proposed letting will secure the tenant on a 5-year lease and reduce the risk of increasing the Council’s exposure to void occupancy costs.

Alternative options

Option 1: Do nothing.

This option has been rejected. If the new lease is not completed the Council would forfeit the opportunity to receive additional income.

Option 2: Renegotiate the terms of the offer.

This option has been rejected as the terms agreed reflect current market value and are comparable with other similar lettings achieved at Tramway Industrial Estate and elsewhere.