Decision details

The Committee received a report from the Group Head – Assets on the proposed actions to address the recommendations in the Public Interest Report.

Councillor Nichols proposed a change to Option 1 in the report by adding the following text “…to establish a risk-based view of the expected long term portfolio and individual property behaviour to inform members and support future decisions including sinking fund adequacy”. This was agreed by the Committee.

The Committee requested to see cash flow at both property and portfolio level and visual representation of these. The Committee also felt the risk register lacked discussion around financial risks. The Committee further requested that the appendices be reviewed by councillors so that they could be understood without lengthy explanation. The Group Head – Assets thanked the Committee for their feedback and advised that the report would be returning to the Development Sub-Committee in the Autumn.

The Committee queried the use of key performance indicators (KPI’s). The Group Head – Assets advised that they would be reporting three times a year, with the reports closely linked to the KPIs. The Deputy Chief Executive further advised that KPI reporting would become more aligned with the financial reporting cycle and that discussions were ongoing as to how to better use KPI’s to inform decision making.

The Committee resolved to note and agree the action plan, subject to continued input and review by the Development Sub-Committee, to adopt a robust asset and tenancy management strategy that manages tenant risk, reduces void periods and empty premises costs, and delivers certainty of income receipt which supports the debt repayment strategy set out for each asset, and approve the proposed KPIs, and to establish a risk-based view of the expected long term portfolio and individual property behaviour to inform members and support future decisions including sinking fund adequacy.