A council has announced plans to sell 32 assets to help tackle its financial challenges.
Southampton City Council leaders have proposed the move as the second phase of the local authority’s asset development and disposal programme (ADDP).
Overall, the programme aims to secure £85 million in capital receipts over the next five years for the “future financial stability” of the council and fund the capitalisation direction from government.
An officer’s public report does not name the 32 assets proposed for disposal, but states their total net book value is more than £5 million.
Councillors have also been given a list of six sites recommended for development due to “significant regeneration and growth potential”.
In October, deputy leader Cllr Simon Letts said the focus at the time was on selling two out of town assets in Cambridgeshire and Northamptonshire, respectively.
Members received a confidential report on a long list of sites in the ADDP when the initiative was approved in March.
A further confidential paper, which cites commercial sensitivity, accompanies the officer’s report to the cabinet meeting on Tuesday, December 17.
The public report said the recommendations come after extensive engagement with relevant services, officers and councillors.
“The receipts from these disposals are required to help fund the council’s transformation programme and exceptional finance support requirement,” the report said.
“The rationalisation of the council’s asset portfolio will also reduce the future repairs and maintenance liabilities reducing the requirement for further capital and revenue funding.
“Lastly and perhaps more importantly it also releases assets that can support the city’s regeneration, supported by the work of the renaissance board.”
Exceptional financial support from government allows the city council to use capital resources, such as asset sales, to fund revenue costs through the capitalisation direction.
This flexibility is currently only available for 2024/25 although council leaders have suggested they could ask for it to be extended.
The assets proposed for disposal are assessed against three criteria: if they are no longer required for operational delivery, the net present value of disposal is positive, and the asset is not required for regeneration purposes.
Cabinet will vote on the assets recommended for disposal, development or regeneration before a full council vote on approving phase two of the ADDP overall at a meeting on February 26.
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