Agenda item

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

3.1       There had been circulated copies of a report by the Executive Director, Finance & Regulatory, providing the details of the income and expenditure for the Chambers Institution Trust for the year 2019/20 including balance sheet values as at 31 March 2020 and proposed budget for 2020/21.  Appendix 1 to the report provided the actual income and expenditure for 2019/20.  This showed a surplus of £37,898 for the year, which was ahead of budget mainly as a result of an increase in rental and service income and a projected surplus of £26,904 for 2020/21.  Appendix 2 to the report provided an actual balance sheet as at 31 March 2020.  It showed an increase in the reserves of £368,650, due to the revaluation of properties offset slightly by unrealised loss on the Aegon Asset Management (formerly Kames Capital) Investment Fund.  Appendix 3 to the report provided a breakdown of the property portfolio showing the effect of the revaluation.  Appendix 4 to the report showed the value of the Aegon Asset Management Investment Fund to 31 March 2020.  Kirsty Robb, Capital & Investments Manager highlighted the main points in the report and suggested that Members may wish to consider increasing their investment with Aegon Assert Management given the level of cash reserves.  In response to a question regarding the amount to be invested she advised that this would depend on the cost of any works that the Trust might approve.  She further confirmed that money could be removed from the fund within 3 days if it was required for other purposes.

3.2       Members asked Neil Hastie for likely costs and timescales for works to the Burgh Hall.  He advised that some estimates for the kitchen works were still awaited but a full refurbishment was likely to be in the region of £10k-£12k.  Previous discussions had considered whether a full kitchen replacement was needed.  Members views were divided so it was agreed that quotes should be obtained for both options before a final decision was taken.  The estimated cost of the replacement ceiling was £65k but updated quotes would be needed as the works were quite extensive.  Neil Hastie further advised that the Burgh Hall was currently being used by the NHS for its Flu injection programme and would also be required for the upcoming Covid-19 vaccination programme which could see the hall in use till at least May 2021.  This would prevent the ceiling works from being carried out but if access to the kitchen could be achieved without going through the main hall then the works in that area might be able to proceed.  With regard to the kitchen it had previously been agreed that there be consultation with the relevant stakeholders to ascertain what their needs would be and this was reiterated.  The importance of engaging with Live Borders was also emphasised. The Chairman enquired about the scaffolding currently being erected and was advised that this was for routine maintenance to the roof.  It had been intended to carry this out during the summer but contractors were only now available.

3.3       Following the discussions on the works to the Burgh Hall, Councillor Bell proposed that £80k be transferred from cash reserves to Aegon Asset Management which would leave the sum of £20k for works to the hall and this was unanimously approved.

            DECISION

            AGREED:-

(a)       to note the actual income and expenditure for 2019/20 in Appendix 1 to the report;

(b)       the proposed budget for 2020/21 as shown in Appendix 1 to the report;

(c)       to note the final balance sheet value as at 31 March 2020 in Appendix 2 to the report;

(d)       to notes the summary of the property portfolio in Appendix 3 to the report;

(e)       to note the current position of the investment in the Aegon Asset Management Investment Fund in Appendix 4;

(f)      to obtain quotes for a replacement kitchen, both full and partial replacement and check if works could be carried out while the hall was being used by the NHS;

(g)     to delay obtaining quotes for the replacement ceiling until the hall was available for the works to be carried out;

(h)     to consult with both Live Borders and the relevant stakeholders regarding the works to the hall;

(i)      that the sum of £80k be transferred from cash reserves to Aegon Investment Management.