Agenda and minutes

Venue: Committee Room - 2nd Floor West Wing, Guildhall

Contact: John Cater
tel. no.: 020 7332 1407  Email: john.cater@cityoflondon.gov.uk

Items
No. Item

1.

Apologies

Minutes:

Apologies for absence were received from Deputy Roger Chadwick, Oliver Lodge, Paul Martinelli, Andrew McMurtrie, and William Pimlott.

 

 

 ...  view the full minutes text for item 1.

2.

Members' Declarations under the Code of Conduct in respect of items on the agenda

Minutes:

Jamie Ingham Clark and Ian Seaton declared non-pecuniary interests in respect of item 9 due to holding positions at St Lawrence Jewry.

 

Mark Wheatley declared a non-pecuniary interest in respect of item 11 due to being the lead for the City of London for the British Red Cross.

 ...  view the full minutes text for item 2.

3.

Minutes of the previous meeting pdf icon PDF 174 KB

To agree the public minutes of the meeting held on 8th December 2020.

 ...  view the full agenda text for item 3.

Minutes:

RESOLVED – That the public minutes of the meeting held on 8th December 2020 be approved as an accurate record.

 

 ...  view the full minutes text for item 3.

4.

Finance Committee's Forward Plan pdf icon PDF 132 KB

Report of the Chamberlain.

 ...  view the full agenda text for item 4.

Minutes:

The Committee received a joint Report of the Town Clerk and the Chamberlain concerning the Committee’s workplan for the next ten months.

 

The Chairman informed Members that, depending on the level of business due to be submitted to the Committee, the FC meeting scheduled on 9th March may be cancelled. The Chairman and officers will review the situation in February and keep Members posted.

 

RESOLVED – that the Committee noted the Report.

 

 

 

 ...  view the full minutes text for item 4.

5.

Report of the work of the Sub-Committees pdf icon PDF 85 KB

Report of the Town Clerk.

 ...  view the full agenda text for item 5.

Minutes:

The Committee considered a report of the Town Clerk which advised Members of the key discussions which had taken place during recent meetings of the Committee’s Sub-Committees.

 

After the Chairman of the Corporate Asset Sub-Committee informed the Finance Committee of CASC’s decision to dispose of the remaining part of the Woodredon Estate in Epping Forest, namely, the Woodredon Farm, a Member of the  Epping Forest and Commons Committee (who also sits on FC), asked whether the funds derived from the disposal could go back to support the vital work of maintaining Epping Forest.

 

The Chairman pointed out that whilst departments and their Service Committees were perfectly entitled to make a case for funding, the sums from the disposals of Corporation assets were a matter, in the first instance, for the Corporate centre; in short, we needed to avoid the automatic assumption that funds from disposals reverted back to the department that was previously responsible for the asset.

 

RESOLVED – that the Committee noted the report.

 ...  view the full minutes text for item 5.

6.

Risk Management - Top Risks pdf icon PDF 131 KB

Report of the Chamberlain.

 ...  view the full agenda text for item 6.

Additional documents:

Minutes:

The Committee considered a report of the Chamberlain which provided updates regarding the top risks within the Departmental Risk Register.

 

After a brief introduction from the Chamberlain, the Chairman noted that the recent Member – officer bilateral meeting with the Commissioner of the City of London Police had been very positive, and, in terms of the broader outlook for budget allocations in 2021/22, we were in good shape going into the meeting of the Resource Allocation Sub-Committee on Thursday 21st January.

 

The Chamberlain informed Members iterations of the Risk Report would go back to including a Heat Map.

 

RESOLVED – that the Committee noted the report.

 ...  view the full minutes text for item 6.

7.

Budget monitoring pdf icon PDF 325 KB

Report of the Chamberlain.

 

 ...  view the full agenda text for item 7.

Additional documents:

Minutes:

The Committee received a Report of the Chamberlain concerning Q3 Budget Monitoring.

 

In response to a query, the Chamberlain confirmed that all departmental underspends would be ringfenced; should these sums not be required by the department, they will be, in effect, clawed back by the centre to replenish City Fund reserves. The Chamberlain’s department will make the judgement on how any underspends are allocated.

 

RESOLVED – that the Committee noted the Report.

 ...  view the full minutes text for item 7.

8.

Chamberlain's Budget Estimate pdf icon PDF 427 KB

Report of the Chamberlain.

 

 

 ...  view the full agenda text for item 8.

Minutes:

The Committee considered a Report of the Chamberlain concerning the Chamberlain’s Departmental Budget Estimate.

 

The Chairman, noting that an element of confusion had emerged in recent weeks concerning the approval of budget envelopes, stressed that, whilst Service Committees should be informed of the size of their budget envelope, they were not there to approve (or reject) that envelope; their role was to prioritise and work within their envelope; this point needed to be emphasised in future years to avoid any further misunderstanding. However, on the whole, the Chairman welcomed the constructive and realistic approach that many Chairmen and Deputy Chairmen of Sub-Committees had taken during this budget round; he hoped that this attitude would endure in upcoming years as we continued to face up to the financial impact wrought by the pandemic.

 

In response to a query, the Chamberlain informed Members that the department’s salary costs were subject to the further implementation of the Target Operating Model, and a more accurate picture would emerge as the TOM matured later in 2021.

 

In response to a separate query, the Chamberlain assured Members that he was confident that the IT Division would continue to deliver to a high standard despite the cuts to its budget in 2021/22. He added that he was very proud of how the Team had stepped up during the pandemic. The Chairman responded that the investment made in recent years in IT had served us extremely well as we have faced the challenge of the pandemic.  

 

In addition, the Chairman noted the changes and potential changes prompted by the TOM and Lisvane would present a useful opportunity to take stock in terms of Member/Committee governance and reporting lines on IT; we were not at that point yet, but it would be something to examine later in 2021.

 

RESOLVED

 ...  view the full minutes text for item 8.

9.

Capital Funding - Prioritisation of 2021/22 Annual Capital Bids - Stage 2 Proposals pdf icon PDF 367 KB

Report of the Chamberlain.

 ...  view the full agenda text for item 9.

Additional documents:

Minutes:

The Committee considered a Report of the Chamberlain concerning the Prioritisation of 2021/22 Annual Capital Bids.

 

In response to a query around financial discipline, the Chamberlain stressed that if pressures arise, we will take stock. There was a great deal of uncertainty this year, not least around how the pandemic itself will play out, plus HMG’s response to the crisis, notably around the contents of the Budget in the spring, and the level of ongoing immediate financial support for businesses. In short, flexibility was key, and he was confident that the proposals had sufficient contingency planning built in.

 

In response to a query around whether the £20m figure allocated for the installation of the Barbican fire doors was accurate, the Chamberlain clarified that £20m had been put aside indicatively; the project still needed to be closely assessed by the Project Sub Committee to ensure we were maximising value for money - so it could be assumed that the figure will be reduced going forward. It should also be noted that the figure includes the replacement of other fittings, in addition to the fire doors, in the communal areas of the buildings across the Barbican Estate.

 

Members on the Barbican Estate Board (who also sit on FC) commented that due to historic agreements struck with the leaseholders, the Corporation, as the landlord, was responsible for the costs of the installation. The situation was compounded by the prohibition of our ability to establish a sinking fund to support these types of remedial and maintenance works.

 

RESOLVED – that the Committee approved the following:

 

1. Note and agree that the plans would be affordable, sustainable and prudent (refer to paragraphs 8-15).

 

2. Consider the green rated bids amounting to £83.5m detailed in the attached appendix, which represents the position agreed with Chief Officers

 ...  view the full minutes text for item 9.

10.

FSD Quarterly Update pdf icon PDF 144 KB

Report of the Chamberlain.

 ...  view the full agenda text for item 10.

Additional documents:

Minutes:

The Committee received a Report of the Chamberlain concerning the Financial Services Division.

 

RESOLVED – that the Committee noted the Report.

 ...  view the full minutes text for item 10.

11.

Finance Committee International Disaster Fund pdf icon PDF 129 KB

Report of the Chief Grants Officer & Director of City Bridge Trust .

 ...  view the full agenda text for item 11.

Additional documents:

Minutes:

The Committee considered a Report of the Chief Grants Officer and Director of City

Bridge Trust concerning the FC’s International Disaster Fund.

 

The Chairman noted that, given the frequency with which the Fund had been utilised for domestic appeals in recent years, the somewhat blanket wording in the Report, namely, “the expectation was that the Fund will only be used for domestic causes in exceptional circumstances”, was now misleading, and it would be helpful for both Members and officers to recognise that the picture was now, de facto, more nuanced, with a more equitable balance between international and domestic donations likely to endure for the foreseeable future given the unfolding damage from the pandemic in the UK.

 

Whilst stressing that City Bridge Trust provide significant philanthropic sums in support of domestic issues and that we should avoid duplication, officers took on board the Chairman’s point and would ensure that our choices around donations were cognisant of the outlook domestically as well as internationally.

 

The Chairman also tasked officers, to in effect, raise our game on leadership and test whether our interventions are making an effective impact in terms of getting others to donate. It was apparent that the donations we have made via are Fund are, all too often, too mechanical and that follow-up or impact analysis was absent. He asked the CBT team would work with the Communications Team to look at ways in which we can be more active and improve our effectiveness over the coming year.

 

The Chairman also welcome Mark Wheatley’s intervention; Mr Wheatley is the lead for the City of London for the British Red Cross, he remarked that the Corporation was uniquely placed to provide leadership from both a domestic and international perspective given our relationships with multiple stakeholders. The Chairman asked officers

 ...  view the full minutes text for item 11.

12.

Central Contingencies pdf icon PDF 112 KB

Report of the Chamberlain.

 ...  view the full agenda text for item 12.

Minutes:

The Committee received a Report of the Chamberlain which provided Members with information regarding the current balance of the Finance Committee Contingency Funds for the current year.


RESOLVED – that the Committee noted the report.

 ...  view the full minutes text for item 12.

13.

Questions on matters relating to the work of the Committee

Minutes:

There were no questions.

 

 ...  view the full minutes text for item 13.

14.

Any Other Business that the Chairman considers urgent

Minutes:

There were no urgent items.

 

 ...  view the full minutes text for item 14.

15.

Exclusion of the Public

MOTION - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of Schedule 12A of the Local Government Act.

 ...  view the full agenda text for item 15.

Minutes:

RESOLVED - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of Schedule 12A of the Local Government Act.

 

 

 ...  view the full minutes text for item 15.

16.

Non-public minutes of the previous meeting

To agree the non-public minutes of the meeting held on 8th December 2020.

 ...  view the full agenda text for item 16.

Minutes:

The non-public minutes of the meeting held on 8th December 2020 were approved as an accurate record.

 

 ...  view the full minutes text for item 16.

17.

Report of the work of the Sub-Committees - non-public issues

Report of the Town Clerk.

 ...  view the full agenda text for item 17.

Minutes:

The Committee noted a report of the Town Clerk which advised Members of the key discussions which had taken place during a non-public session at a recent meeting of one of the Committee’s Sub-Committees.

 

 

 

 

 ...  view the full minutes text for item 17.

18.

Reconciliation of historic liabilities on the Citigen contract

Joint Report of the Chamberlain and the City Surveyor.

 ...  view the full agenda text for item 18.

Minutes:

The Committee considered a joint Report of the Chamberlain and the City Surveyor concerning the reconciliation of historic liabilities on the Citigen contract.

 

 ...  view the full minutes text for item 18.

19.

Citigen Contract Extension

Report of the City Surveyor.

 ...  view the full agenda text for item 19.

Minutes:

The Committee considered a Report of the City Surveyor concerning the Citigen extension negotiations between E.ON (Citigen) and the City of London (CoL) to extend the agreement for the supply of heat and chill to contracted City properties.

 

 ...  view the full minutes text for item 19.

20.

Bridge House Estates Strategic Governance Review - Update Five

Report of the Chief Grants Officer & Director of City Bridge Trust.

 ...  view the full agenda text for item 20.

Minutes:

The Committee received a Report of the Chief Grants Officer & Director of City Bridge Trust concerning the Strategic Governance Review for Bridge House Estates.

 

RESOLVED – that the Committee noted the Report.

 

 ...  view the full minutes text for item 20.

21.

City Fund: Annual Update and 2021 Strategy

Report of the City Surveyor.

 ...  view the full agenda text for item 21.

Minutes:

The Committee received a Report of the City Surveyor concerning the Annual Update and 2021 Strategy for the City Fund Estate.

 

 ...  view the full minutes text for item 21.

22.

City's Estate: Annual Update and 2021 Strategy

Report of the City Surveyor.

 ...  view the full agenda text for item 22.

Minutes:

The Committee received a Report of the City Surveyor concerning the Annual Update and 2021 Strategy for the City’s Estate fund.

 

 ...  view the full minutes text for item 22.

23.

Strategic Property Estate: Annual Update and 2021 Strategy

Report of the City Surveyor.

 ...  view the full agenda text for item 23.

Minutes:

The Committee received a Report of the City Surveyor concerning the Annual Update and 2021 Strategy for the Strategic Property Estate.

 

 ...  view the full minutes text for item 23.

24.

Bridge House Estates: Annual Update & 2021 Strategy

Report of the City Surveyor.

 ...  view the full agenda text for item 24.

Minutes:

The Committee received a Report of the City Surveyor concerning the Annual Update and 2021 Strategy for Bridge House Estates.

 ...  view the full minutes text for item 24.

25.

Appendix - Allocations from 2020/21 Contingencies

Appendix to ITEM 12.

 ...  view the full agenda text for item 25.

Minutes:

The Committee noted the non-public appendix to ITEM 12 (Central Contingencies)

 ...  view the full minutes text for item 25.

26.

Non-public decisions taken under delegated authority and urgency procedures

Report of the Town Clerk.

 ...  view the full agenda text for item 26.

Minutes:

The Committee noted a report of the Town Clerk detailing two non-public decisions taken under delegated authority and urgency procedures since the last meeting.

 ...  view the full minutes text for item 26.

27.

Non-public questions on matters relating to the work of the Committee

Minutes:

There were no non-public questions relating to the work of the Committee.

 ...  view the full minutes text for item 27.

28.

Any Other Business that the Chairman considers urgent and which the Committee agree should be considered whilst the public are excluded

Minutes:

The Committee considered an item of urgent business relating to Furlough.

 ...  view the full minutes text for item 28.