Agenda and minutes

Apologies for absence were received from Alderman Sir Peter Estlin, Deputy Chris Hayward, Alderman Tim Levene, Catherine McGuinness, Sir Michael Snyder, and James Tumbridge.

Shahnan Bakth, Deputy Elizabeth King and Benjamin Murphy observed the meeting virtually.

The Town Clerk informed the Committee that Deputy Madush Gupta, who had given apologies for lateness, had a non-pecuniary/pecuniary interest in respect of item 18 on the non-public agenda.

To agree the public minutes and non-public summary of the meeting held on 8 November 2023.

The public minutes and non-public summary of the meeting held on 8 November 2023 were approved as an accurate record.

Report of the Town Clerk.

Members received a report of the Town Clerk providing the Committee’s action tracker.

Report of the Chamberlain.

Members received a report of the Chamberlain providing the Committee’s forward plan.

The Chairman requested that the Committee receive quarterly update reports on the Enterprise Resource Planning programme.

To receive the draft public minutes and non-public summary of the Projects and Procurement Sub-Committee held on 6 November 2023.

The public minutes and non-public summary of the Projects and Procurement Sub-Committee meeting held on 6 November 2023 were noted.

The Deputy Chairman provided an update from the Sub-Committee’s meeting on 4 December. It was recognised that the City Corporation faced difficulties in its management of contracts due to staff turnover. The Chairman requested that officers return in six months with proposals on how the City Corporation could upgrade its ability to manage contracts.

Report of the Chamberlain.

Members received a report of the Chamberlain concerning the Cyclical Works Programme.

The Chairman stressed the importance of ensuring that the funding strategy embedded cyclical works as part of the future capital programme. Members were supportive of increasing the budget allocation to a cumulative £133.7m as recommended at option 3 in the report and supported the funding allocation against the overall programme for the next 5 years.

Several Members requested greater visibility on areas with ring-fenced budgets, such as the independent schools, the City of London Police, City Bridge Foundation and the Markets. The Chamberlain undertook to include further information on these through future financing plans and in the budget papers, to allow the Finance Committee to see the overall picture. 

A Member, also the Chair of the Investment Committee, sought assurance that the outsourced Chief Investment Officer (OCIO) function had taken the funding strategy into account when formulating their asset allocation recommendations. The Chamberlain replied that the funding strategy figures had not been included in the overall calculation, as this would not take place until February 2024 when the entire capital programme was put together following input from the Resource Allocation Sub-Committee and the Policy and Resources Committee. The OCIO’S recommendations on asset allocation were points of principle around investment strategy, based on the available sums of money and the likely medium-term requests for funding.

RESOLVED, that – Members:

a)    Note the report, including the profile and categories of CWP works across Backlog (the ‘bow wave’) and 3 years forward plan forecasts.

b)    Endorse a total 5-year budget allocation of £133m comprising £62.7m for City Fund plus £71m for City Estate to meet the immediate needs of Cyclical Works Programme for onward approval, under the budget setting process, to the Court of Common Council.

c)    Note the amount requested

Joint Report of the Chamberlain, the Deputy Town Clerk, the Chief Operating Officer, the City Surveyor, the Remembrancer and the Director of Community and Children’s Services.

Members received a report of the Chamberlain concerning the Committee’s operational budget.

The Chairman informed the Committee that he had requested that this be the last time the Committee was presented with the ‘latest’ budget. He thanked the Financial Services Department for their work.

RESOLVED, that – Members:

a)    Note the latest revenue budget for 2023/24.

b)    Review and approve the estimate for 2024/25.

c)    Agree that amendments for 2023/24 and 2024/25 budgets arising from changes to recharges or for any further implications arising from energy price increases and other reviews and changes to the capital charges during budget setting are delegated to the Chamberlain.

d)    Note the approved capital and supplementary revenue budgets.

Report of the Managing Director, City Bridge Foundation.

Members received a report of the Managing Director, Bridge House Estates, concerning Benefits in Kind.

Members noted that the Committee’s former sub-committee, the Financial Grants Oversight and Performance Sub-Committee, had historically been responsible for benefits in kind (BIK).  The Chairman asked Members to consider whether they felt the Finance Committee remained the appropriate place for these to be reported.

The Chamberlain noted that the Finance Committee may wish to retain some oversight due to its responsibility for obtaining value for money, while the Policy and Resources Committee would want to consider whether BIKs were being deployed in the right areas.

Members felt the paper was helpful. The Deputy Chairman suggested that the Efficiency and Performance Working Party might be an appropriate place for BIKs to be considered in detail. 

RESOLVED, that – Members:

a)    Note the process undertaken to review BIK across CoLC Departments/ Institutions.

b)    Approve the £10,000 additional City’s Cash Budget for this review with implementation to take place in 2023/24.

c)    Approve the amendments to the BIK Guidelines including its implementation and ongoing support.

Report of the Chamberlain.

The Committee considered 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 – the report be received and its contents be noted.

Report of the Chamberlain.

Members received a report of the Chamberlain concerning the Autumn Statement 2023.

RESOLVED, that – the report be received and its contents be noted.

Report of the Chamberlain.

Members received a report of the Chamberlain concerning the risk register.

RESOLVED, that – the report be received and its contents be noted.

A Member asked if the City Corporation’s position on the minimum receipt from London Wall West was still in effect.

In reply, the Chairman said that the minimum possible figure had been agreed some time ago. He reminded Members of the City Corporation’s fiduciary responsibilities, which should remain the Finance Committee’s paramount concern on this subject, and the obligation to maximise the return from a site held in City Fund.

Several Members noted that the City Corporation was obligated to get the best value from the site, with value incorporating meanings beyond financial, such as social or cultural. The consideration of the offers received by the City Corporation would have to balance these various forms.

The City Surveyor said that the City Corporation was pursuing planning permission and wanted to achieve best value from the site. Bids would be invited once this was obtained. The importance of the return from the site needed to be recognised as it would provide a significant part of the funds for the City Corporation’s various projects.

Asking a separate question, a Member noted they had received more emails regarding the condition of the Golden Lane Estate Leisure Centre than on any other topic during their time on the Court. They asked if there was any progress that could be made by applying for CIL money. In reply, the Chairman said that officers were exploring the options here, noting that there were restrictions on what CIL money could be used for. 

The Chairman noted, with regard to business rates, that the City Corporation was developing an SME Delivery Plan. He felt it was important for the Finance Committee to have sight of the draft plan.

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.

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.

To agree the non-public minutes of the meeting held on 8 November 2023.

The non-public minutes of the meeting held on 8 November 2023 were approved as an accurate record.

To receive the draft non-public minutes of the Projects and Procurement Sub-Committee held on 6 November 2023.

The non-public minutes of the Projects and Procurement Sub-Committee meeting held on 6 November 2023 were noted. The Sub-Committee had also met on 4 December.

Joint Report of the Executive Director, Environment, the Managing Director of City Bridge Foundation and the Chamberlain.

Members received a joint report of the Executive Director, Environment, the Managing Director of City Bridge Foundation and the Chamberlain concerning the Natural Environment Charities.

Report of the Chamberlain/Chief Operating Officer.

Members received a report of the Chamberlain concerning software licencing procurement.

Report of the Executive Director of Community and Children’s Services.

Members received a report of the Executive Director of Community and Children’s Services concerning a contract extension.

Report of the Chamberlain.

Members received a report of the Chamberlain concerning procurement of purchase cards.

Report of the Chamberlain.

Members received a report of the Chamberlain concerning business rates.

Report of the City Surveyor.

This report had been pulled from the agenda to allow the Investment Committee to consider it first.

Report of the City Surveyor.

Members received a report of the City Surveyor concerning an asset swap.

Report of the City Surveyor.

Members received a report of the City Surveyor concerning the disposal of a freehold.

Report of the City Surveyor.

Members received a report of the City Surveyor concerning the disposal of a freehold.

Report of the City Surveyor.

Members received a report of the City Surveyor requesting delegated authority.

Joint Report of the City Surveyor and the Deputy Town Clerk.

Members received a joint report of the City Surveyor and the Deputy Town Clerk concerning procurement for catering.

Report of the Town Clerk.

The Committee noted a report of the Town Clerk detailing a non-public decision taken under urgency procedures since the last meeting.

Report of the Chamberlain.

Members received a report of the Chamberlain concerning major projects.

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

The Committee considered two related items of urgent business relating to the Enterprise Resource Planning programme.

Report of the Chamberlain.

Members received a report of the Chamberlain providing an update on the Enterprise Resource Planning programme’s budget.

Report of the Chamberlain.

Members received a report of the Chamberlain concerning the Enterprise Resource Planning programme.

The Chamberlain to be heard.

Members received oral updates from the Financial Services Director and the Chief Strategy Officer concerning resourcing in their respective teams.