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Item 9Ai Fgpreport for Decision Item 9 (a) i FINANCE & GENERAL PURPOSES COMMITTEE 28 JUNE 2021 REPORT FOR DECISION REVIEW OF EARMARKED RESERVES – PENLEE HOUSE Recommendation: That the Finance & General Purposes Committee resolves to recommend to the Town Council that the current level of earmarked reserves is appropriate for the purposes outlined in this report. Overview of reserve position: This should be read alongside report 9(b), which outlines two requests to move money from reserves into appropriate expenditure lines. There are six earmarked reserves that relate to Penlee House. Code Name Current value Description Proposed use 2021/22 financial year 2995/1 Conservation £2,426 Intended for any To be used as Fund conservation work required needed – no on paintings or museum planned use this objects year 2995/2 Penlee House £35,640.22 Intended for building and Up to £3,925 to Building Fund roof repairs, Replace fire panel repairs/replacement parts for the air conditioning unit. 2995/3 Council run £30,685.38 Intended to support Up to £10,000 exhibition Fund unforeseen or additional towards increased costs of borrowing transportation costs paintings for exhibitions 2995/4 Coach House £16,855.17 To be used towards the Likely to be used in refurbishment refurbishment of the Coach 2022-23 financial Fund House year 2995/5 Agency Buffer £40,970 Intended to help mitigate Not to be used this Fund the loss of the Cornwall year – to be used in Council agency fee from 2022-23 financial April 2022 year 2996/1 Acquisition Fund £8,930 Retained in case the To be used as Council wishes to acquire needed – no additional items for the planned use this collection year Page 1 of 2 Item 9 (a) i In-year contributions In light of the challenging financial climate caused by the Covid-19 pandemic, in-year contributions to reserves have been kept to a minimum during this financial year. • £10,000 has been added to the Buildings reserve. This decision was taken because, as the building ages, it is important to maintain a reasonable buildings reserve. Also, the reserves were used last year to pay for the new IT infrastructure, the awning for the café and specialist paintings storage units for the art store and therefore now require ‘topping up’ to ensure a sufficient reserve in case of emergency need. • A further £10,000 has been added to the Council-Run Exhibitions reserve. This is because this financial year is the last year that we will have income from Cornwall Council and Cornwall Museums Partnership towards exhibition costs, and it was therefore decided to add £10,000 to this reserve to assist with the cost of borrowing works for exhibition. There is no planned in-year contribution to this reserve in the next two financial years. Anna Renton Director 28 June 2021 Page 2 of 2 Item 9(a) ii FINANCE & GENERAL PURPOSES COMMITTEE 28 JUNE 2021 REPORT FOR DECISION MOVEMENT OF FUNDS FROM EAR-MARKED RESERVES – PENLEE HOUSE Recommendation: That the Finance & General Purposes Committee resolves to recommend to the Town Council: a) A virement of up to £3,925 from the Buildings Fund (2995/2) to the Museum Maintenance Fittings budget line 2100/1 to pay for a new fire alarm panel and installation at Penlee House. b) A virement of up to £10,000 from the Council-Run Exhibitions Reserve (2995/3) to the Council Run Exhibitions line (2055) to cover the costs of to borrow paintings for the Anchor Studio exhibition. Background: Fire Alarm Panel The current fire alarm panel was installed in 1997 and is reaching the end of its useful life. The screen has burned out, making it difficult to determine which zones have been activated. Although not dangerous, it is prudent to replace the panel before it fails. We are currently obtaining three quotations to ensure best value. The quoted cost from the existing supplier to replace the panel is £3,925 + VAT. It is therefore requested to vire up to £3,925 from the reserve, but the best value supplier will be used. Exhibition transportation The cost of borrowing paintings has increased in recent years, and especially during the pandemic. This is due to increased transportation costs and increased administrative charges being passed on from lending institutions. Paintings travelling to Penlee House from other museums require transportation by specialist art handling companies. Best value is always sought. Due to the pandemic, our exhibitions programme has had to change, and the Anchor Studio exhibition, which was due to start in January, now falls entirely into the current financial year. This means that the transportation costs for this exhibition were only factored in as ‘one way’ during the financial year 2021-22. As the exhibition was postponed to September, ending in January, both the incoming and outgoing costs will fall into the same financial year. Page 1 of 2 Item 9(a) ii For this reason, we are requesting the ability to transfer up to £10,000 to help with the cost of the Anchor Studio exhibition. From the Penlee House Reserves Position paper it will be noted that £10,000 was added to the reserve this year, therefore, we are asking just to be able to use up to this amount if required. Alternative funding sources will be sought, so the impact on the reserve may be lessened, however, it would be very helpful to have the reassurance of being able to use up to £10,000 from the reserve to ensure that the exhibition transportation can go ahead. Anna Renton Director 28 June 2021 Page 2 of 2 Item 9(b) i FINANCE AND GENERAL PURPOSES COMMITTEE - 28 JUNE 2021 REPORT FOR DECISION REVIEW OF EARMARKED RESERVES – LEISURE AND AMENITIES COMMITTEE Recommendation That the Finance & General Purposes committee resolves to recommend to the Town Council to approve the earmarked reserves, as reviewed and recommended by the Leisure and Amenities Committee. Background The Leisure and Amenities Committee have reviewed the current position of earmarked reserves and have resolved to recommend them to the Finance and General Purposes Committee. These reserves and the full report is attached at Appendix 1. Appendix 1 – Leisure and Amenities Review of Earmarked Reserves Ben Brosgall Leisure and Amenities Manager Item 9 (b) i Appendix 1 LEISURE AND AMENITIES COMMITTEE 14 JUNE 2021 REPORT FOR DECISION REVIEW OF EARMARKED RESERVES Recommendation: That the Leisure and Amenities Committee resolves to recommend to the Finance & General Purposes Committee that the current level of earmarked reserves in the body of the report. Overview of reserve position: The final column identifies the changes to relevant reserve lines as a result of recommendations in reports on the agenda. Those reports are 7k and 7l. Comments have been made alongside each of the reserves to provide additional information relating to their current levels and in year contribution amounts to achieve the purpose that they were designed for and in what approximate timeframe. Page 1 of 9 Item 9 (b) i Appendix 1 Code Name Current In year Description Proposed use Comments Adjusted total value (incl in contribution 2021/22 FY should subsequent year 2021/22 reports be contribution) approved by members 1995/1 Car Park £15,000 £15,000 Car Park Maintenance and Wellfield’s car This reserve combined with Maintenance Improvement Fund was park wall the expenditure amount in Fund established to build a reserve to repair budget line 1060/4 carry out a required wall repair. In (£26,814) is currently lower addition, members wanted to than the estimated cost of start building a reserve for future carrying out the wall repair resurfacing work, upgraded car work and significant park payment machines and adjustment will need to be electric vehicle charging points made in future years for resurfacing and electrical charging points if these are still to be progressed. 1995/2 Allotment £3,000 £1,500 Intended to procure / rent Building an The current amounts in this Provision Fund additional allotment land should earmarked budget line would not allow it become available reserve to for turning unmanaged land enable in to an allotment. But Penzance would go some way to Council to taking a managed space buy / rent or and making the clear suitable adjustments required to land to turn it in to an allotment transform into allotment space 1995/3 Play Equipment £10,000 £10,000 To budget for future replacement Building a Should the Penlee Park Play Fund of play equipment (based on a 10- reserve for equipment be refurbished year lifecycle) and to cover future soon, an estimated budget significant in year safety repairs replacement / of approximately £100k that would exceed the improvement would be needed in 10 maintenance budget work and years’ time to carry out the future replacement work. Page 2 of 9 Item 9 (b) i Appendix 1 replacement (The fund would also be before failure utilised for vandalism or damage to equipment beyond economic repair 1995/4 Public Toilet £56,000 £20,000 The structure of South Pier Toilets Portion to be A Long term view is Report 7l £53,000 Refurbishment has a limited life span in its used for required in relation to Fund current condition. Future rebuild Wallgate South Pier Toilets and a may be required or significant replacement. public toilet improvement refurbishment. In addition, all Pending programme in general. This remaining Wallgate handwashing further is linked to the re units will need to be replaced in decision from constitution of the Public the next 4 years. the Public Toilet working Group. Toilet Future adjustment to this Working budget line will be required. Group / Setting of a strategic plan.
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