Agenda, decisions and draft minutes

There were no apologies.

There were no apologies.

No declaration of interest had been raised.

No declaration of interest had been raised.

No urgent matters had been raised.

No urgent matters had been raised.

To receive the minutes of the Cabinet meeting held on 24 September 2019 (copy enclosed). 

RESOLVED that the minutes of the meeting held on 24 September 2019 be received and confirmed as a correct record.

The minutes of the Cabinet meeting held on 24 September 2019 were submitted.

RESOLVED that the minutes of the meeting held on 24 September 2019 be received and confirmed as a correct record.

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) detailing the latest financial position and progress against the agreed budget strategy.

RESOLVED that Cabinet –

(a)       note the budgets set for 2019/20 and progress against the agreed budget strategy, and

(b)       approve the transfer of cash funds from the Savings Achievement Contingency to Leisure Services to offset the need to allocate the Prudential Borrowing savings to the SC2 rather than the delay to setting up the Alternative Delivery Model.

Councillor Julian Thompson-Hill presented the report detailing the latest financial position and progress against the agreed budget strategy.  He provided a summary of the Council’s financial position as follows –

·        the net revenue budget for 2019/20 was £198.538m (£194.418m in 2018/19)

·        an overspend of £1.733m was forecast for service and corporate budgets

·        detailed required savings and efficiencies of £5.672m including corporate savings identified in 2018/19 (£0.5m), schools savings of 2% (£1.32m) and service efficiencies and savings (£3.852m)

·        highlighted current risks and variances relating to individual service areas including changes following the Senior Leadership Team restructure and the budget impact following the transfer of School Transport from Highways and Environmental Services to Planning and Public Protection, and

·        provided a general update on the Capital Plan, Housing Revenue Account and Housing Capital Plan.

Cabinet was also asked to approve the transfer of cash funds from the Savings Achievement Contingency to Leisure Services to offset the need to allocate the Prudential Borrowing savings to the SC2 rather than the delay to setting up the Alternative Delivery Model (ADM).

By way of background Councillor Thompson-Hill advised that the original business case for SC2 had been predicated on a declining subsidy until break-even was reached in year 5.  A budget loss of £378k had been shown in the first year with a number of options identified to minimise that loss including to delay Prudential Borrowing – that decision had been taken given that it was a new business venture and the likelihood there would be variances.  However following a savings review it was apparent that the total saving of £850k relating to the ADM proposal would not be achieved in full and as a Council it was decided to use the lever of the delay to Prudential Borrowing to enable the ADM saving of £850k to be taken as part of the 2019/20 budget process, thus reducing the need for service cuts elsewhere.  Consequently it was proposed that £612k be used from the contingency fund created for unachieved savings to meet the year 1 funding shortfall for SC2.  To provide some future assurance for SC2 the service had been clear that the situation would not reoccur in the next financial year given the measures put in place.

Cabinet acknowledged that as a Council they had been made aware of the potential financial risks and variances at the outset for SC2 and had planned mitigation measures in order to address them.  Cabinet also commended the facility which provided an exciting and unique attraction and acknowledged the wider benefits to the economy and other local businesses.  During the ensuing debate further clarification was sought regarding the reasons for the increase in the budget loss for the first year together with assurances in terms of future years’ financial trading figures and ensuring the facility’s continued long term success.

Councillor Thompson-Hill responded to the issues raised as follows –

·         based on current figures and the amended business case there was confidence that SC2 would be cost neutral by year 5 – as an attraction the facility was already a success: visitor numbers had been high and the facility well received with the pool operating at or near capacity during most of the trading period

·         a combination of factors had contributed to the funding shortfall including (1) loss of the Easter trading period for the outdoor Splash Pad and associated projected income (2) Laser TAG having not attracted the numbers predicted but as a result of marketing a growth was predicted going forward, and (3) secondary visitor spend (food/drink, etc.) had not generated as much income as anticipated which was  ...  view the full minutes text for item 5.

RESOLVED that Cabinet’s forward work programme be noted.

The Cabinet forward work programme was presented for consideration and members noted the following future additions –

·         21st Century Schools Programme: Band B Proposals – November

·         Llangollen Business Improvement District (BID) – January

RESOLVED that Cabinet’s forward work programme be noted.

RESOLVED that under Section 100A of the Local Government Act 1972, the Press and Public be excluded from the meeting for the following items of business on the grounds that it would involve the likely disclosure of exempt information as defined in Paragraph 14 of Part 4 of Schedule 12A of the Act.

To consider a confidential report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) seeking Cabinet’s review of the terms for the sale of the premises.

RESOLVED that –

(a)       the Council sell the freehold interest in the Bodelwyddan Castle Hotel on terms set out in Appendix 1 to the report;

(b)       the Council sell the freehold interest in the Castle, the Bodelwyddan Castle Trust premises, (excluding land let on agricultural tenancy, the Lodge and park land) on the terms set out in Appendix 1 to the report;

(c)        the Council to keep the grass-crete carpark parkland, together with a 999 year lease of the woodland and the meadow, for public access run by Countryside Services (subject to Strategic Investment Group approving the necessary finance to establish and maintain this Denbighshire County Council retained area);

(d)       land currently subject to an agricultural tenancy to be retained and managed together with the Council’s other agricultural land and farms, and

(e)       the small lodge on the Eastern boundary of the estate to be retained by the Council pending a review of its use.

Councillor Julian Thompson-Hill presented the confidential report seeking Cabinet’s review of the terms for the sale of the premises.

Details of the proposed terms of sale of the freehold interest in Bodelwyddan Castle Hotel and part of the estate together with the retention of other areas for public access were further elaborated upon and discussed at the meeting.  The differences to the previous report submitted to Cabinet in September 2018 were highlighted and explained and it was confirmed that the capital receipt to the Council remained the same.  An update on negotiations with Bodelwyddan Castle Trust regarding the existing lease was also provided.

Cabinet discussed the report at length with the Lead Member and officers regarding the financial considerations, including how the figures referred to in the report had been derived together with the financial responsibilities and liabilities of the parties involved both under the existing lease and in moving forward with the sale.  The management and future ambition for the retained areas by Countryside Services was also discussed which would be subject to funding bids to the Strategic Investment Group.  Cabinet noted the merits of the sale in terms of safeguarding the future of the building and ensuring its future success with benefits to the local economy and tourism together with the retention of areas for public access and opportunities in that regard.  Consequently Cabinet supported the report recommendations and it was –

RESOLVED that –

(a)       the Council sell the freehold interest in the Bodelwyddan Castle Hotel on terms set out in Appendix 1 to the report;

(b)       the Council sell the freehold interest in the Castle, the Bodelwyddan Castle Trust premises, (excluding land let on agricultural tenancy, the Lodge and park land) on the terms set out in Appendix 1 to the report;

(c)        the Council to keep the grass-crete carpark parkland, together with a 999 year lease of the woodland and the meadow, for public access run by Countryside Services (subject to Strategic Investment Group approving the necessary finance to establish and maintain this Denbighshire County Council retained area);

(d)       land currently subject to an agricultural tenancy to be retained and managed together with the Council’s other agricultural land and farms, and

(e)       the small lodge on the Eastern boundary of the estate to be retained by the Council pending a review of its use.

The meeting concluded at 11.10 hrs.