To consider the submitted report on a review of the Investment Strategy to cover regeneration investments.

Further to Minute 30.4.17, the Investment Committee considered a further revised Investment and Regeneration Fund Strategy, which had been updated to cover Regeneration Fund investments.  Members did not support the proposed inclusion of Regeneration Fund investments within the Investment Fund Strategy as they felt that this was better considered elsewhere with final decisions being made by the Council.  However, if regeneration proposals were in accordance with the requirements of the Investment Fund Strategy they would still be considered by the Investment Committee.

The report also set out proposed changes to the Investment Committee’s Terms of Reference to enable it to make recommendations to the Council on regeneration fund investments which were not supported by the Committee.

Resolved:

(i)       that, subject to the following, the Council be recommended to approve the revised Investment Fund Strategy, including the additional £50m for the General Investment Fund (making it a total of £100m) to be funded from prudential borrowing (when required), set out in Appendix 1 to the submitted report:

·       title to remain Investment Fund Strategy and all references in the document to be amended accordingly;

·       VRP to cover capital risks only, therefore delete ‘vacant or reduced rental periods’ from P18;

·       add … ‘by the Council or’ through a wholly owned company of the Council to the last sentence of the first paragraph of P12 and last sentence in section 1.8 on P14;

·       VRP being set at 0.5% of the purchase price before costs, subject to at least annual review;

·       Fund Management being set at 0.25% of the purchase price before costs, subject to at least annual review;

·       Investment Committee to monitor the levels of VRP and Fund Management Funds as part of managing the investment portfolio;

·       cash flow table to be put in order of real costs;

·       the following to be added to the cash flow table:

·       average initial yield;

·       average yield;

·       average rental income over x years (at current prices);

·       surplus before tax;

·       surplus after tax (if applicable); and

·       write off of acquisition costs; and

(ii)      that the Head of Finance bring a list of assets that should be included within the Investment Portfolio to a future meeting of the Investment Committee.

To consider the submitted report on a review of the Investment Strategy to cover regeneration investments.

The Committee considered a report that proposed revisions to the Investment Fund Strategy.  The proposed revisions would create a separate element of the fund for local regeneration projects as well as reviewing the level of the General Investment Fund.

Members were concerned that the proposed revisions regarding regeneration could create political tensions.

Resolved:

i)             That the Assistant Director of Corporate and Business Services in consultation with the Executive Head of Business Services and Head of Finance further revise the Investment and Regeneration Strategy; and

ii)            Group Leaders be requested to consult their group members on forthcoming iterations.

To consider the Mayor’s response to the Council’s objections to the review of the Investment Fund Strategy and Investment Committee Terms of Reference as set out in the attached Record of Decision.

Further to the Council meeting held on 23 February 2017, members considered the submitted report and record of decision on the Mayor’s response to the objections raised by the Council on the review of Investment Fund Strategy and Investment Committee Terms of Reference.

Mayor Oliver proposed and Councillor Mills seconded a motion as set out below:

(i)         that the Council be recommended to approve the revised Torbay Council Investment Fund Strategy set out in Appendix 1 to the submitted report; and

(ii)        that the Council be recommended to approve the revised Terms of Reference of the Investment Committee set out in Appendix 2 to the submitted report.

During the debate Councillor Tyerman proposed and Councillor Carter seconded an amendment to the motion as follows:

(i)         that the Council be recommended to approve the revised Torbay Council Investment Fund Strategy set out in Appendix 1 to the submitted report, subject to the level of authority to the Investment Committee being increased to £10m;  and

(ii)        that the Council be recommended to approve the revised Terms of Reference of the Investment Committee set out in Appendix 2 to the submitted report, subject to the level of authority to the Investment Committee being increased to £10m.

A recorded vote was taken on the amendment.  The voting was taken by roll call as follows:  For: Councillors Barnby, Bent, Bye, Carter, Doggett, Ellery, Hill, Kingscote, Lewis (B), Lewis (C), Morey, O’Dwyer, Parrott, Pentney, Robson, Sanders, Stockman, Stringer, Stubley, Sykes, Thomas (D), Thomas (J), Tolchard, Tyerman and Winfield (25);  Against: Mayor Oliver, Councillors Amil, Excell, Haddock, King, Manning and Mills (7);  Abstain: Councillor Brooks (1);  and Absent: Councillors Darling (M), Darling (S), Morris and Stocks (4).  Therefore, as more than two-thirds of members present and voting had cast their vote in support of the amendment, it was carried.

The amended (substantive) motion was then considered by members.

A recorded vote was taken on the amended (substantive) motion.The voting was taken by roll call as follows:  For: Councillors Barnby, Bent, Brooks, Bye, Carter, Doggett, Ellery, Haddock, Hill, Kingscote, Lewis (B), Lewis (C), Morey, Parrott, Pentney, Robson, Sanders, Stringer, Stubley, Sykes, Thomas (D), Thomas (J), Tolchard, Tyerman and Winfield (25);  Against: Mayor Oliver, Councillors Amil, Excell, Manning and Mills (5);  Abstain: Councillors King, O’Dwyer and Stockman (3);  and Absent: Councillors Darling (M), Darling (S), Morris and Stocks (4).  Therefore, as more than two-thirds of members present and voting had cast their vote in support of the amended (substantive) motion, it was carried as follows:

(i)         that the Council be recommended to approve the revised Torbay Council Investment Fund Strategy set out in Appendix 1 to the submitted report, subject to the level of authority to the Investment Committee being increased to £10m;  and

(ii)        that the Council be recommended to approve the revised Terms of Reference of the Investment Committee set out in Appendix 2 to the submitted report, subject to the level of authority to the Investment Committee being  ...  view the full minutes text for item 178

To consider the submitted report on a review of the Council’s Investment Fund Strategy (Policy Framework) and terms of reference for the Investment Committee.

Following the Council’s decision on a local investment at its meeting on 8 December 2016, the Council considered the submitted report on a review of the Investment Strategy and Investment Fund undertaken by the Investment Committee to ensure there was the greatest opportunity to maximise the benefits income, diversify investments and spread risks.  The report also set out a review of the Investment Committee’s terms of reference to ensure they matched the revised Strategy and working practices.  Members noted the Investment Strategy formed part of the Council’s Policy Framework and therefore required Council approval following recommendations by the Mayor.

Mayor Oliver proposed and Councillor Mills seconded a motion as set out below:

(i)         that the Council be recommended to approve the revised Torbay Council Investment Fund Strategy set out in Appendix 1 to the submitted report;  and

(ii)        that the Council be recommended to approve the revised Terms of Reference of the Investment Committee set out in Appendix 2 to the submitted report.

During the debate Councillor Tyerman proposed and Councillor Thomas (J) seconded an objection to the motion as follows:

that the Council formally objects to the adoption of the revised Torbay Council Investment Fund Strategy on the basis that the Investment Committee recommendation should be adopted by Council as follows:

3.3       That the Council be recommended to approve the revised Torbay Council Investment Fund Strategy set out in Appendix 1 to the submitted report, subject to the level of authority to the Investment Committee being increased to £10m.

3.4       That the Council be recommended to approve the revised Terms of Reference of the Investment Committee set out in Appendix 2 to the submitted report, subject to the level of authority to the Investment Committee being increased to £10m.

In accordance with the Constitution at F4.9, the Council therefore requires the Mayor to consider this objection by 3 March 2017 either:

a)         submit a revision of the Investment Fund Strategy with the reasons for any amendments to the Council for its consideration;  or

b)        inform the Council of any disagreement that the Executive has with any of the Council’s objections and the Executive’s reasons for any such disagreement.

The objection was put to the vote and declared carried. The Mayor would consider the objection and publish his response by 3 March 2017 for consideration at the Council meeting on 6 April 2017.