Agenda and minutes

As this was the first meeting of the Galashiels Common Good Fund Sub-Committee following the Local Government Election in May 2017, nominations were invited for the role of Chairman of the Sub-Committee.  Councillor Aitchison was proposed by Councillor Scott and seconded by Councillor Jardine.  Councillor Aitchison was duly appointed as Chairman.  Nominations were also invited for the role of Vice-Chairman.  Councillor Scott was proposed by Councillor Jardiine and seconded by Councillor Anderson.  Councillor Scott was duly appointed as Vice-Chairman.

DECISION

AGREED that as there were no other nominations, Councillor S Aitchison was duly appointed as Chairman and Councillor H Scott was appointed as Vice-Chairman.

Minute of 9 March 2017 to be noted (copy attached).

            There had been circulated copies of the Minute of 9 March 2016.

DECISION

NOTED the Minute for signing by the Chairman.

Consider report by the Chief Financial Officer (copy attached).

3.1       There had been circulated copies of a report by the Chief Financial Officer providing details of the income and expenditure for the twelve months to 31 March 2017, including the balance sheet values for the period and proposed budget for 2017/18.  Mr Yallop highlighted the main points of the report and appendices. Appendix 1 to the report provided the actual Income and Expenditure position for 2016/17, showing a surplus of £3,346.  This varied from the projected deficit reported in March 2017 and was due to lower than anticipated property costs and no grant expenditure.  A surplus of £2,630 was projected for 2017/18.  Mr Yallop also advised that following legal clarification, it had been agreed in 2016/17 that all remaining assets that belonged to the Ladhope Estate Trust would be transferred to Galashiels Common Good and on 1 April 2016, the Newton Investment of £123,254 was transferred and the unrealised gain on this investment was recognised within the Common Good Investment at 31 March 2017.  Appendix 2 to the report detailed the Balance Sheet value as at 31 March 2017 and showed an increase in the reserves of £94,771 and noted that this was due mainly to the transfer of Ladhope Trust Fund assets and the annual depreciation charge.  The breakdown of the property portfolio showing the depreciation charge for 2016/17 was shown in Appendix 3.  Appendix 4 provided details of investments externally managed in the Newton Real Return Fund, showing an increase of £4,753 from total cash invested and Appendix 5 contained a graph produced by KPMG on how the Fund had performed against that of its peers to 31 March 2017.  Mr Yallop explained that Members had expressed concern previously about the Newton Fund’s performance over Quarters 3 and 4 in 2016.  Given that previous performance, Members were advised that the Fund continued to be monitored closely and noted that the Fund’s performance had improved during the most recent quarter.

3.2       Discussion followed and Members requested confirmation on a number of points.  Mr Yallop advised that the Newton Fund was selected in 2013 as a dividend growth model designed to preserve Capital and produce dividends.  It was acknowledged that there were other, better-performing Funds available and a further report would be forthcoming from KPMG in relation to the Newton Fund going forward.

DECISION

(a)       NOTED within the appendices to the report:-

(i)        the actual income and expenditure for 2016/17 in Appendix 1;

(ii)       the final Balance Sheet value as at 31 March 2017 in Appendix 2;

(iii)      the summary of the property portfolio in Appendix 3; and

(iv)      the current position of the investment in the Newton Fund in Appendix 4; and

(v)       the short, medium and long term performance of the Newton Fund against its peers in Appendix 5.

(b)       AGREED the proposed budget for 2017/18 as detailed in Appendix 1.

Verbal update.

With reference to paragraph 4 of the Minute of 9 March 2017, Ms Annabel Phipps, Estates Surveyor, was in attendance at the meeting to update the Committee and answer any questions.  As an introduction, Ms Phips provided background to this item, explaining that in May 2016, the proposals that were being put forward had been agreed in principle and that a public consultation had then taken place.  Costings, along with a final design were now being prepared and the Chairman requested that a report be submitted to the next meeting of the Sub-Committee to include a final map/plan and details of the funding arrangements.  Ms Donald added that there were still contractual issues to be agreed such as which organisation would be responsible for the planting and clarity about maintenance of the areas once planted.  Ms Phips confirmed that the Galashiels Common Good would own the trees and other facilities such biking tracks would follow.  She also confirmed that footpaths were already included in the current Plan.

DECISION

(a)       NOTED report.

(b)       AGREED that the final design and funding arrangements be brought to the next meeting the Galashiels Common Good Sub-Committee.

            The commencement time for future meetings was discussed and Members agreed that meetings would now begin at 5.30pm.

            DECISION

            AGREED that future meetings would commence at 5.30pm