Agenda and minutes

Minute of 2 July 2020 to be approved (copy attached).

CHAIRMAN

The Chairman opened the meeting and welcomed Members of Selkirk Common Good Fund Sub Committee and members of the public to the Scottish Borders Council’s open on-line meeting.  The meeting was being held remotely in order to adhere to guidance on public meetings and social distancing currently in place, due to the Covid-19 pandemic.

There had been circulated copies of the Minute of 2 July 2020.

DECISION

APPROVED the Minute for signature by the Chairman.

Consider report by Executive Director Finance & Regulatory (copy attached).

There had been circulated copies of a report by the Executive Director Finance & Regulatory providing the details of income and expenditure for the Selkirk Common Good Fund for the three months to 30 June 2020, a full year projected out-turn for 2020/21, and projected balance sheet values as at 31 March 2021.  Treasury Business Partner, Sara Halliday, highlighted the main points of the report and appendices.   Appendix 1 provided the projected income and expenditure position for 2020/21.  This showed a projected deficit of £44,426 for the year. Included in the outturn position were dividends from the Common Good Funds investment in Aegon Asset Management (formerly Kames Capital) amounting to £5,273, with the current projection estimated at a 2.5% return.  As a result of the market value dropping due to the impact of the COVID-19, this projected 2.5% return was less than the 5% target and the monthly distribution profile projections provided by Aegon. In terms of the proposed property repair budget the report referred to a detailed record from Estates on the condition of all farms which was circulated to Members.  Appendix 2 of the report, provided the balance sheet value to 31 March 2020, the projected movement in year and a projected balance as at 31 March 2021. All fixed assets of the Common Good Fund were revalued every 5 years as part of the Council’s rolling programme.  The fixed assets were revalued at 1 April 2019.  Appendix 3 showed the values of the individual properties at 31 March 2020, projected depreciation charges 2020/21 and projected value at 31 March 2021.  Ms Halliday confirmed that, following a rebranding exercise, from 7 September, Kames Capital would change its name to that of it’s parent company, Aegon Asset Management. This change did not affect the way in which the Fund was managed or invested. The current position of the Aegon Asset Management Investment Fund was shown in Appendix 4 to the report.

2.2       A question was asked about the amount of wayleave payments received for electricity poles situated on land owned by Selkirk Common Good.  The Estates Surveyor, Tricia Hill, agreed to check this.

DECISION

(a)       AGREED the projected income and expenditure for 2020/21 in Appendix 1 as the revised budget for 2020/21

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

(i)          projected balance sheet value as at 31 March 2021 in Appendix 2;

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

(iii)         current position of the Aegon Asset Management Investment Fund in Appendix 4.

(c)        NOTED that the Estates Surveyor would check the detail of wayleave payments received for electricity poles situated on land owned by Selkirk Common Good.

With reference to paragraph 4.1 and 4.2 of the Minute of 2 July 2020, the Property Officer, Frank Scott, gave the following update:

3.1       Green Shed

The locks had been changed on both doors and five sets of keys delivered to Council HQ where a record was being kept of who has possession of these. For any further keys to be cut, written permission would be required. Work on the roof had commenced although the speed of progress was weather dependent.

3.2       Victoria Hall

The inspection of the external condition of the building from the cherry picker had started during the current week. Mr Scott explained that any urgent work needed, in terms of health and safety consideration, would be completed by the end of the week and that the builder/roofer would come back after the inspection with a Phase 2 Plan.

3.3       Smedheugh Farm

            With reference to paragraph 4.3 of the Minute of 2 July 2020, Mr Scott referred to his emails to Members which explained that, once started, the work to replace the lintel was a much larger job than anticipated. He advised that the work had been completed at a cost of just over £8k.

DECISION

NOTED

“That under Section 50A(4) of the Local Government (Scotland) Act 1973 the public be excluded from the meeting for the following items of business on the grounds that it involves the likely disclosure of exempt information as defined in the relevant Paragraphs  of Part 1 of Schedule 7A to the aforementioned Act.”

                   DECISION

AGREED under Section 50A(4) of the Local Government (Scotland) Act 1973 to exclude the public from the meeting during consideration of the business detailed in the Appendix to this Minute on the grounds that it involved the likely disclosure of exempt information as defined in Paragraph 6 of Part I of Schedule 7A to the Act.

Private minute of 2 July 2020 to be approved (copy attached).

The private section of the Minute of 2 July 2020 was approved.

Consider update by Estates Surveyor in respect of private business (Briefing Note attached).

Members considered a briefing note by the Estates Surveyor giving an update on repair and maintenance issues relating to Common Good property.