Issue - meetings

To consider the report of the Chief Finance Officer.

The Chief Finance Officer presented the report which sought funding to develop three business cases to explore the feasibility of expanding Exeter City Group’s range of Subsidiaries to include a Company providing market rent properties to let, a Consultancy Company and a Company to provide retro-fit solutions for existing housing. The report further sought approval for a Commercial Finance Manager to provide dedicated support to Exeter City Group and the other Council owned Companies, which would be funded by Exeter City Group along with funds received from the other Companies.

Councillor D. Moore, having given notice under Standing Order No. 44, spoke on this item.

The response of the Council Leader is attached as an appendix to the minutes.

The Chief Finance Officer explained that there was an immediate need for £300,000 to fund the creation of the business cases, to be funded from the balance left on the Business Rates Pilot and General Fund reserves. Extensive work was necessary to ensure viability prior to the establishment of the companies. The £60,000 required for the additional member of staff would ultimately be funded by the expanded Group of Companies, with the post predominantly seconded to the Exeter City Group to provide strategic financial support.

The Council Leader and another Member welcomed in particular:-

·         a market rent housing company which would purchase property from Exeter City Living to provide good quality rented accommodation; and

·         a company to support the Council in its ambitions to deliver retrofit solutions to existing properties and to encourage Passivhaus developments as part of the goal of becoming a carbon neutral city.

RECOMMENDED that Council approve:-

(1)  £300,000  for the development of three business cases to explore the feasibility of creating the new subsidiaries as set out in the report;

(2)  £60,000 for a new Finance Manager - Commercial to support Exeter City Group and the wider Council Companies, to be funded by the Companies themselves; and

(3)  delegating authority to the Chief Executive & Growth Director, in consultation with the Section 151 Officer (or Deputy) and Leader of the Council (or Deputy), to give final approval to proceed once the Council’s financial position is secure.