Cabinet Decisions

The delivery of the berth 4/5 project has been delayed whilst an Environmental Impact Assessment (EIA) is undertaken to inform the planning and marine licence consents process. This unanticipated delay has resulted in a significant increase in the estimated total cost of the scheme which now exceeds the allocated budget.

Cabinet agree the following:

1.  That a 2021-22 General Fund capital virement to transfer budget totalling £55k to the ‘Berth 4/5 Replacement Project’ scheme for the development of the EIA be approved, to be funded from a £25k transfer from the ‘Replacement of Lead Lights at Port’ scheme and £30k transfer from the ‘Ramsgate Port & Harbour Utilities Supply upgrade’ scheme;

2.  That a 2021-22 supplementary capital budget of £325,000 be approved for additional costs associated with the ‘Berth 4/5 Replacement Project’ scheme, to be funded from a £50,000 revenue contribution and £275,000 of borrowing, in accordance with Rule 4 of the Budget and Policy Framework Procedure Rules;

3.  That additional revenue expenditure of £445,000 recognised in the 2020-21 accounts and financed from the Council’s earmarked reserves be approved, in accordance with Rule 4 of the Budget and Policy Framework Procedure Rules.

Authority was granted for the Council to enter into a new contract for insurances that is within the approved budget. Cabinet approval was required because the contract value is in excess of £750k.

Cabinet agreed to letting of the contract for insurance services as laid out in the Cabinet report.

The Council’s Corporate Statement for 2019-2023 sets out the direction of travel for the next four years. The assets identified below represent ageing property that requires repair and capital investment but, should this be completed,  will not improve the return on income, or fulfil any operational requirements.

Cabinet agreed the following:

1. To dispose of the Granville Cinema in accordance with the Council’s Community Asset Transfer Policy as listed in Option 1;
2. To dispose of the Granville Cinema on the open market under Option 2, if the proposal to dispose under Option 1 does not bring forward a viable purchaser;
3. To give delegated authority to the Director of Property, in consultation with the Disposal Surveyor to agree Heads of Terms and enter into the relevant negotiations;
4. To give delegated authority to the Director of Law and Democracy to sign all documents necessary to give effect to the disposal.

Cabinet were presented with a report providing the first 2021-22 budget monitoring report for General Fund revenue and capital, reflecting the latest forecasts in light of Covid-19 (hereafter referred to as “Covid”) as well as the Housing Revenue Account. Cabinet approval was granted for an number of budget adjustments and the approach to addressing the forecast budget gap for 2021-22.

Cabinet agreed the following:

1.  To fund the budget gap as at para 5.2 to the Cabinet report as detailed below:

“Currently it is anticipated that there will be £1m remaining in the Covid reserve as at the end of 2020-21 based on provisional outturn and it is proposed that this, along with the £1m forecast additional emergency funding, and anything received through Sales Fees and Charges compensation will fund this gap, if it materialises.”

2.  To the change in HRA funding as set out in para 7.2 of the Cabinet report, as detailed below:

“To budget virements totalling £897k to fund pressures within the HRA”

3.  To the updated General Fund capital programme as set out in Section 6 and Annex 1 to the Cabinet report.

Cabinet were provided with a view on the 2020-21 provisional outturn for General Fund revenue and capital, as well as the Housing Revenue Account. These figures are provisional and therefore subject to possible change as part of the year-end accounts closure process.

1. Cabinet agreed the following:

a.  The reserve movements as identified at section 5 table 3 to the Cabinet report;

b.  The slippage in the General Fund Capital Programme as identified in section 6 to the Cabinet report;

c.  The slippage in HRA budgets as identified in section 6/7 to the Cabinet report.