Agenda item

Consider report by Chief Financial Officer (copy attached).

2.1       There had been circulated copies of a report by the Chief Financial Officer providing the details of income and expenditure for the Selkirk Common Good Fund for the six months to 30 September 2018, a full year projected out-turn for 2018/19 and projected balance sheet values as at 31 March 2019. Pension and Investments Manager, Kirsty Robb, referred to Appendix I to the report which provided the projected income and expenditure position.  She advised that since the report had been written it had been brought to her attention that £71k which had been approved for the refurbishment of the Sir Walter Scott courthouse, would be due for payment before the end of the financial year.  Therefore rather than the projected surplus of £36,143 shown, there would be a deficit of approximately £29k. Funding would be brought back from the Kames Investment Fund to cover this shortfall. The projected outturn position showed an amount of £68 relating to interest receivable on cash held by SBC.  Also included were dividends from the Common Good Funds investment in Kames Capital amounting to £11,568.  Dividends earned to date amounted to £7,462 which was in line with the overall 5% target and the monthly distribution profile projections provided by Kames. Appendix 2 provided a projected Balance Sheet value as at 31 March 2019.  It showed a projected decrease in reserves of £31,815.  A breakdown of the property portfolio and details of the projected annual rental income by individual property and actual property expenditure to 30 September 2018 was show in Appendix 3 to the report.  The current position of the Kames Capital Investment Fund was shown in Appendix 4 to the report.  The additional investment of £75,000 approved at the meeting on 12 September had been fully invested and the additional income, estimated at £1,875, generated was reflected in the income assumptions.   The fund had a 0.46% unrealised loss in market value since investment, largely due to continued volatility in investment markets.  Overall, however taking account of the income received the fund had achieved a return of 1.86% for the year.

2.2       A question was asked about the list of moveable assets included in the appendices to the report.  Councillor Edgar believed that the list was incomplete.  He advised that paintings had been removed from the Town Hall prior to renovation, stored by Live Borders museums service, but replaced with different paintings. For clarification it was agreed to request a review of the assets owned by the Selkirk Common Good and to establish their whereabouts.  In response to a question about the flat within Victoria Hall, which was currently unoccupied, it was noted that this was under the management and control of Live Borders, being part of the Victoria Hall.  However Ms Scott agreed to enquire about the intentions of Live Borders regarding this property.

DECISION

(a)          AGREED the projected income and expenditure for 2018/19 as shown in Appendix 1 to the report as the revised budget for 2018/19, noting that this did not include an approved payment due for refurbishment work to the Sir Walter Scott Courthouse.

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

(i)            the projected balance sheet value as at 31 March 2019 in Appendix 2;

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

(iii)         the current position of the Kames Capital investment Fund in Appendix 4.

(c)          AGREED to request a review of moveable assets owned by Selkirk Common Good Fund presently held by Live Borders; and

(d)          AGREED to request that the Estates Surveyor make an enquiry with Live Borders about the intentions regarding the flat at the Victoria Hall which was currently unoccupied.

MEMBER

Councillor Thornton-Nicol joined the meeting and apologised for her unavoidable delay.