The Assistant Director – Corporate and Business Services to present the Chief Finance Officer’s report on the proposed Capital Investment Fund.

The Mayor to answer the Board’s questions.

The Board to make any comments, conclusions and recommendations to the meeting of the Council to be held on 22 September 2016.

The Board considered a report which made recommendations to the Council on expanding the previously agreed Capital Investment Fund from £10 million to £50 million.  The Board recognised that the associated Investment Strategy took a cautious approach and requested that the Chief Executive consider whether the Strategy should be more ambitious and/or whether it could be funded in an alternative way in order to maximise the return to the Council.

Resolved:  (i)  that the Assistant Director – Corporate and Business Services be requested to prepare a supplementary report to the Council setting out a revised set of governance arrangements for the Capital Investment Fund based on the views expressed by the Board, namely:

·         Any investment decisions up to £5 million to be agreed by an politically balanced Investment Committee

·         Any investment decisions of £5 million or over to be agreed by the Council

·         The members of the Investment Committee to receive appropriate training

·         If any two members of the Investment Committee vote against a decision at the Committee, then the decision should be referred to the Council; and

(ii)        that the Chairman of the Investment Committee report back to the Council after three months of operation of the Investment Fund to provide assurance that the Fund is maximising the use of its resources and to provide any revised projections on the income generated by the Fund.

To consider the submitted report on the criteria and governance for the Capital Investment Fund and to make recommendations to the Council.

The Policy Development and Decision Group (Joint Operations Team) made the following recommendations to the Mayor:

That the Council be recommended:

(i)       that the Investment Fund be increased by £40 million to a total of £50 million to be initially funded by prudential borrowing, with the revenue costs associated with that borrowing (MRP and interest costs) to be funded from the investment returns or higher NNDR income;

(ii)      that the Investment Strategy for the fund as detailed within Appendix 1 be approved;

(iii)      that the governance of fund as detailed within paragraph 7.4 be approved;

(iv)     that the Chief Executive be delegated authority to set up a delivery team including sourcing external support if required, to be funded from the investment returns; and

(v)      that the Chief Executive be delegated authority to make any changes to the Strategy, in consultation with the Mayor, Group Leaders, Section 151 Officer and Executive Head of Business Services.

The Mayor considered the recommendation of the Policy Development and Decision Group (Joint Operations Team) set out above at the meeting and the record of his decision, together with further information is attached to these Minutes.