To consider the report from the Operations Manager and to make any appropriate comments (to follow).
Minutes:
The Committee were given a presentation from the Operations Manager and were invited to make appropriate comments.
The Operations Manager explained that, as discussed at the last meeting, officers were asked to put together a proposal that could move the service away from the reliance on the special expense charge and capital funds by looking at a rent increase.
The current rent was £17.50 per plot.
Special expenses charge for allotments provided a further £20k income.
April 2017 – Increase rent to £35.00 (double current rate) with no change to special expense charge, but keep a maintenance allowance of £8.
April 2018 – Increase rent to £52.50 which would reduce special expenses from £20k to £12k
April 2019 – Increase rent to £70.00 which would further reduce the special expense charge to £4k
If at any point there was an underspend then this could be transferred to reserves for future maintenance.
Nothing could be changed until April 2017 as 12 months’ notice would have to be given. A course of action needed to be agreed to be able to inform tenants with their next invoices in April
Councillor Mrs Buck stated that if the proposals went ahead then she would like to see a concession made for charities who used allotments, as funds were tight for those organisations.
The Operations Manager explained that charities did not currently have concessions, but she could look into that with any proposed increase.
Councillor Rochford stated that he supported the idea of youth groups or charities receiving a concession and would like to see by 2020 no charge to special expenses for allotments.
The Executive Director stated that the Committee as a group could make a recommendation on what that money could be spent on.
Councillor J Collop stated that the review needed to be carried out however he could not see the running costs for the Council.
The Executive Director explained that the cost of running allotments was £28,000 - £8,000 rents and £20,000 special expenses.
Councillor J Collop stated that if the Council did increase rents then people tended to look after their allotment better, and this would not cost the Council as much to maintain them. The Executive Director explained that the costs might reduce on a phased basis and the maintenance cost could reduce. Any money could be put into reserves.
Councillor J Collop added that eventually allotments would become self-sufficient.
Councillor Tyler asked that if the proposal went ahead would there be a fall-off in the people wanting to use an allotment.
Councillor Rochford advised that there was a massive waiting list.
The Operations Manager explained that it was a possibility that the popularity of allotments might fall away, however they were currently fashionable and it would be quite easy to do a marketing campaign. She did not see this as a major issue.
In response to a query from Councillor Mrs Collop, it was explained that 10 plots out of 557 allotments were used by schools, etc.
In response to a query regarding the size of plots, the Operations Manager explained plots did vary in size and the Council did try to match people up with their requirements.
The Committee agreed with the proposal to increase rents, and would like to see any expense to Special Expenses removed. The Committee would also want a review after a year and that a waiver or reduced cost be introduced for charities/schools or groups who were deemed worthy.
The Committee recommends that:
Delegated authority be granted to the Executive Director in consultation with the Chief Financial Officer to increase rents and to remove a charge to Special Expenses, and a report be presented to the next meeting.