KEY DECISION

Report No. 103/2018 was received from the Director for Resources.

Mr Gordon Brown, Deputy Leader and Portfolio Holder for Regulatory Services, Waste Management, Planning Policy & Operations, Property Services, and Finance, including Revenue & Benefits and Internal Audit introduced the report.

The report sought Members’ approval for use of Council finances to support community organisations that had successfully applied for LEADER grant funding but required assistance in bridging the period between confirmation of grant award and completion of the works being funded.

During discussion the following points were raised;

·         Mr Brown requested that the decision recommendations section within the report be amended to read Cabinet Member for Finances rather than Cabinet Member for Resources

·         Rutland had been very successful in receiving grants for the LEADER priorities as outlined in section 2.3 of the report.

·         LEADER grant funding was not paid until the completion of works which often left successful applicants with a cashflow problem.

·         2% interest would be charged on the loan over its short term duration and would provide a reasonable return.

·         The initial LEADER application process was so rigorous that the risk of default by those organisations that applied for this assistance was very low.

·         This type of assistance had been offered before with other sources of funding, eg. the grants received by Uppingham Cricket Club and Ketton Sports Centre, but this mechanism gave a much more structured approach.

·         17 out of the 24 applications currently in the pipeline for funding to the Rutland and Rural Peterborough Local Action Group (LAG) were from Rutland.

·         The Peterborough and Rutland LAG had had meetings with the potential applicants for this assistance which indicated that there would be a positive take-up of this offer.

·         There was a small window of opportunity in which to offer this assistance as projects needed to be finished and paid for by 31 March 2019 in order to secure funding.

DECISION:

1.    Cabinet AUTHORISED the Director for Resources, in consultation with the Cabinet Member with Portfolio for Finances, to provide funds (not exceeding £200,000 in total) to community organisations on a short term loan basis to enable successful grant funded projects to be completed.

Reason for the decision

1.    LEADER funding was time limited with final applications required before 31 March 2019 so it was important that as many grant funding applications as possible were completed before that date. It was also important that the Council supported the voluntary and community sector and providing this funding to bridge the gap between grant award and final payment would achieve both objectives.

2.    With each application being assessed on a case by case basis and given the anticipated short loan duration, the risk of default on repayments was considered to be low and the administration charge to be levied would ensure a cost neutral initiative.