Supplementary Pack 1
Argyll and Bute Council · 26 June 2025
Back to Argyll and Bute Council — 26 June 2025 and its agenda
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Argyll and Bute Council Comhairle Earra-Ghàidheal Agus Bhòid Executive Director: Douglas Hendry Kilmory, Lochgilphead, PA31 8RT Tel: 01546 602127 Fax: 01546 604435 DX 599700 LOCHGILPHEAD 20 June 2025 SUPPLEMENTARY PACK 1 ARGYLL AND BUTE COUNCIL - ON A HYBRID BASIS IN THE COUNCIL CHAMBER, KILMORY, LOCHGILPHEAD AND BY MICROSOFT TEAMS on THURSDAY, 26 JUNE 2025 at 10:30 AM I enclose herewith amended Appendix 2(b) in relation to item 7(c) (Earmarked Reserves - 2024/25 Year End) which should replace that previously issued with the Agenda for the above meeting. Douglas Hendry Executive Director AMENDED APPENDIX 7. YEAR END REPORTING PACK 2024/25 Reports by Section 95 Officer (c) Earmarked Reserves - 2024/25 Year End (Pages 3 - 4) Appendix 2(b) Argyll and Bute Council Contact: Hazel MacInnes, Senior Committee Officer Tel:01546 604269 Public Document Pack
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Appendix 2b ARGYLL AND BUTE COUNCIL COUNCIL REPORT BY EXECUTIVE DIRECTOR DOUGLAS HENDRY & EXECUTIVE DIRECTOR KIRSTY FLANAGAN 26 JUNE 2025 PROPOSAL TO EARMARK FUNDS FROM GENERAL FUND RESERVE STORM EOWYN 1. INTRODUCTION 1.1 The purpose of this report is to request support in earmarking from unspent budget/unallocated General Fund for a specific purpose, in line with the Policy on End of Year Flexibility. 2. DETAIL 2.1 Initiative/Proposal 2.1.1 It is proposed that £1.3m be earmarked from a combination of the overall revenue budget underspend and funds held within the Unallocated General Fund to fund expenditure in relation to Storm Eowyn. 2.2 2.2.1 2.2.2 2.2.3 2.2.4 Business Case – Storm Eowyn A separate report is on the Council agenda today in respect of Storm Eowyn. Storm Eowyn struck Argyll and Bute on 24 January 2025, bringing wind speeds of up to 100 mph and causing widespread damage. The Council’s infrastructure suffered significant damage, particularly to roads, sea walls, harbour facilities and property. Helensburgh Leisure Centre suffered extensive damage to its roof and water damage to the interior of the building and fixtures and fittings. At this stage all costs in relation to Storm Eowyn are not known and figures may be subject to change. However, at the present time it is estimated that the total expenditure amounts to £3.952m. This figure does not include any shortfall in relation to Helensburgh Leisure Centre (HLC) in respect of the difference between insured works and required works. For HLC, the Council’s insurers will cover like for like repairs to the building and contents. However, it is felt that it would be prudent to check that the existing design and roof covering will withstand future weather incidents of this nature. Should changes to the design be required there will be re-design, re-engineering and legal costs involved. £2m has already been set aside from the roads reconstruction budget, £0.792m has been absorbed within the 2024-25 revenue outturn and £0.353m is expected from a Bellwin Claim. This leaves a gap of £0.807m. Page 3 Agenda Item 7c
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Appendix 2b 2.2.5 2.2.6 This gap does not include any costs for Helensburgh Leisure Centre. On the basis that the Council will require to undertake a technical assessment that will not be covered by the Insurers like for like cover and in the knowledge that not all costs incurred by the Council will ultimately be recoverable, it would be prudent to set aside some funding to cover: a) any additional costs to ensure that the HLC is suitably reinstated for use at the earliest opportunity, and b) potential legal costs incurred by Council in court proceedings in regard to the design and construction of the Leisure Centre. At the budget meeting on 27 February 2025, Council previously agreed to set aside £2.9m to boost future resilience for severe weather related costs. As the wording suggests, this was for future resilience but there is an option that Council could agree to use some of this funding towards the budget gap. However, due to the overall underspend on the revenue budget in 2024-25 and the balance in the unallocated General Fund, it is recommended that Council set aside a further £1.3m of funding towards Storm Eowyn related costs on the basis that any funding not required for such purposes be returned to the General Fund. 2.3 2.3.1 Expenditure Profile It is anticipated that the sum of £1.3m will be spent over 2025-26 and 2026-27. DOUGLAS HENDRY & KIRSTY FLANAGAN EXECUTIVE DIRECTORS Page 4