Agenda item

To consider the report on the Council’s Community Legacy Fund.

Councillor Buckle, Lead Executive Member for Communities and Economic Development introduced the item, which asked the Council to agree to the establishment of a Community Legacy Fund.

Members noted that in April 2021 the Council had reviewed the Constitution and agreed to change the way in which it engaged and funded community activity. The Community Engagement Forum (CEF) process was replaced with a Member’s Locality Fund approach, to enable Members to engage directly with communities and to support small community projects. On 8 July 2021, the Executive had considered a report which outlined options for developing a Selby District Community Fund, using the CEF 2020-21 underspend.The Executive had approved the donation, subject to appropriate conditions, of the CEF 2020/21 underspend of £100,000 to Two Ridings Community Foundation to establish a Selby District Community Fund.

Members acknowledged that when it was considered by the Executive, a North Yorkshire Local Government Reorganisation (LGR) outcome had not yet been announced. The Executive report also included consideration of establishing a legacy Endowment Fund. This was a fund which would be invested to generate an annual return into the Selby District Community Fund and would offer permanent investment into the Selby District community. The Council would then be able to secure a legacy fund which remained specific to Selby District residents and communities, indefinitely.

The Council were reminded that a working group of Officers and representative Group Members had been established to discuss options for the use of remaining CEF funds. This group received a presentation alongside the Executive, from Two Ridings Community Foundation. The purpose of the presentation was to highlight options for community funding management and investment. Options included direct, finite use of the £100,000, as well as potential to attract finite match funding, and to look at an endowment investment approach which could offer both long-term match funding and interest growth. The discussions considered whether this provided opportunity to offer a solution to securing community investment into the district for the long-term future.

The report outlined the objectives of a Community Legacy Fund, with various delivery options and how the endowment fund approach was considered; the accompanying appendices gave an overview of Two Ridings Community Foundation, and the latter part of the report provided consideration of the model, including the preferred option.

Several questions were asked, and views expressed at the meeting, with general support from Members for the proposals. It was felt that providing a legacy for the district, considering the recent announcements around local government reorganisation in North Yorkshire, was particularly important.

It was debated by the Council as to whether the amount to invest should be increased from £1m to £2m; this suggestion was welcomed by Members. The Executive Member for Finance and Resources believed that the Council could financially afford the increased amount. Following a further question, Members were reassured that Officers had considered other providers but that the Two Ridings Community Foundation was seen as the best option; a number of other local authorities had invested with them, and their low risk and good return profile was an additional contributing factor.  

It was suggested that an update on the scheme should be provided to Council at its next meeting, and that the governance of it needed to be of the utmost importance. The Council were pleased to note that community organisations would not be stopped from applying for funding from the CEF underspend before it was invested.

The Selby district area would be properly represented by Officers and two selected Councillors, the money having been ringfenced perpetually; Two Ridings would hold the funds and undertake the administration, but it would be the Council that set the criteria for the money’s use.

The Chief Finance Officer advised Members that should they decide to invest an increased amount of £2m, it should be noted that the Council’s Medium Term Financial Strategy (MTFS) only assumed a £1m investment. The Council did face some financial challenges, and Members had to be aware that committing more than the recommended amount, and as set out in the MTFS, would undermine it. Members noted the Officer’s advice.

It was proposed, seconded and agreed that the amount to be invested by the Council with the Two Ridings Community Foundation should be amended to £2m.

RESOLVED: The Council approved

i.             the establishment of a Community Endowment Fund to be invested and managed by Two Ridings Community Foundation, subject to final due diligence, in line with Option 3 at Section 4.4 outlined in the Executive report of 8 July 2021, but as amended to the investment of a minimum £2 million, subject to available unallocated funds committed to the Programme for Growth;

ii.            that authority be delegated to the Director of Economic Regeneration and Place, in consultation with the Lead Member for Communities and Economic Development, the S151 Officer and Solicitor to the Council, to enter into an agreement between Selby District Council and Two Ridings Community Foundation to secure achievement of agreed parameters to the investment and subsequent grant making process; and

iii.          that an update on the scheme be provided for Members at the next meeting of the Council.