City might consider selling assets to finance funding of £8m proposed improvements

From the The Oxford Times, first published Friday 14th Jul 2006.

OXFORD City Council fears it might not be able to fund its capital programme because of doubts over whether it has the right assets to sell.

The Town Hall's finance scrutiny committee is to meet urgently to discuss the funding of the council's capital programme until 2008.

The council's budget book balances the capital programme with £8.25m of asset disposals and £95,000 generated from right-to-buy sales over the next two years.

But the man in charge of the authority's purse strings wants to ensure the funding of major projects is not hand-to-mouth.

City councillor Stephen Tall, executive member for better finances, said: "It's all very well having million pound schemes for new ideas.

"The council has a huge property portfolio, the danger is that we flog the family silver.

"If you are selling off assets that would be around for the next 100 years is the money going to be around for the next 100 years?

"That's what I want to guard against. We have got to make sure we are planning for the long term."

One of the ways to finance the costly programme, which includes refurbishment and improvements to swimming pools and leisure centres, is to sell high-maintenance, low-income properties although the council has so far been unable to provide a definitive list of potential asset sales.

The committee will ask: What progress is being made on the disposal of assets?

What are the financial consequences and risks of selling the assets proposed?

What would happen if the target was not achieved?

City council Labour group leader Bob Price said: "We have a pretty ambitious capital programme that requires funding from the sale of assets to make the numbers stack up. If we can't get the asset disposals through, we have to think of cutting the capital programme.

"It's of concern and it's important we don't continue with a programme that is not achievable."

Last year, the city council disclosed it faced a £9.25m bill to repair crumbling buildings like community centres and park buildings.

The council is only spending about £500,000 a year on maintenance and repairs and the backlog remains.

A city council spokesman added: "The council regularly reviews the capital programme to ensure it is both affordable and deliverable.

"The disposal of any asset over £50,000 is approved by the executive board."

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