Councillor Williamson, the Deputy Leader and Executive Member for Financial Sustainability, submitted a report in respect of the Millstream Business Plan 2021/22 and Council Cashflows. He reminded members that the property investment company was formally established in February 2018 to generate revenue for the council and was in its third year of trading. The company was looking ahead at further growth by investing in more property. However, the plans had been put on hold as the government changed the rules on public borrowing in November 2020 which had prohibited borrowing with the primary aim of generating yield.
Councillor Williamson said that the company was required to update its business plan annually and the council, as a shareholder, must approve it.
Jonathan Geall, Director of Millstream, gave an update to the council. He thanked members of the shareholder group and the Head of Strategic Finance and Property for their guidance in developing the business plan. He confirmed that the council had asked Millstream to pause any proposed acquisitions in 2021/22 pending further counsel advice on the government changes. The business plan proposed to continue to manage the properties it currently holds with no acquisitions proposed for 2021/22 and assured members, on behalf of the company, that the business plan would deliver income to the council as assumed in the 2021/22 budget.
Councillor Williamson proposed and Councillor Deering seconded, a motion that the recommendations be supported. A motion to support to the recommendation having been proposed and seconded, was put to the meeting and a vote taken. The motion was declared CARRIED.
RESOLVED – that the Millstream Property Investment Ltd’s 2021/22 30 Year Business Plan be approved.