Hampshire County Council

Policy and Resources PRC

3 April 2007

Executive Member - Policy and Resources Item

5 April 2007

Sir Harold Hillier Gardens - Development Proposals

Report by the Director of Property, Business and Regulatory Services

1

Summary

1.1

This report seeks approval to proposals for the utilisation of development funds in order to:

· improve the infrastructure of the Sir Harold Hillier Gardens (SHHG), especially accessibility

· enhance visitor facilities particularly in the areas of education and sustainability

1.2

The report also seeks approval to respond to the legal requirement of the Charity Commission to establish a Reserves Fund. It is proposed to do this by transferring £50,000 from the development fund set up by the County Council into an interest bearing account. It is also proposed to freeze the County Council's contribution to the SHHG and to re-deploy the savings into projects aimed at increasing visitor numbers, particularly from families.

1.3

The proposals contained in this report have been considered alongside the SHHG's strategic master plan which is reviewed on a regular basis.

1.4

The proposed improvements to the infrastructure and the enhancement of facilities at the SHHG will enhance the quality of place for all users of the SHHG.

Recommendations

That approval be given to:

1. The priorities for future capital investment detailed in the report

2. The use of balances be directed to development priorities

3. Transferring £50,000 from the development fund into a `Reserves' Fund to meet the requirements of the Charity Commission

4. Freezing the SHHG cash limit and re-deploying the savings into projects that will generate new visitor income, particularly from families.

2

Background

2.1

Since the opening of the Visitor and Education Pavilion (VEP) in 2003, annual visitor numbers have increased by 37% from 89,000 to 120,000 and the income from conferences and special events, mostly at Jermyn's House, has risen by over £75,000 p.a. to around £xx p.a. The business plan targets have consistently been met, and frequently exceeded. A new five year plan is currently being prepared which will establish more challenging targets in terms of future income generation.

2.2

Development Funds

2.2.1

At the time the VEP was opened the Executive Member for Policy and Resources agreed that an annual budget provision of £500,000 should continue to be made and that any budget surplus could be retained for the purpose of future investment, subject to the usual approvals. In addition to this, local fundraising, which is usually targeted at significant new facilities, such as a lake, has continued successfully. Some of this funding is restricted as specified by the respective donors.

2.2.2

A balance, originally held to fund the building of the VEP and related external areas also remains. The completion of the Education Garden and removal of the contractor's haul road in 2006 were the last of the VEP related projects, although it would be prudent to retain a small balance for latent minor repairs and maintenance.

2.3

A summary of the development funds is shown in the table below:

Current

Balance

Commitments

Funding

Available

£,000

£,000

£,000

VEP

200

⁽¹⁾ 50

150

Local fundraising (CAF)

185

30

155

Contributions to Development

140

0

140

Reserve fund

0

50

- 50

525

130

395

⁽¹⁾ for latent repairs/maintenance

3

Infrastructure Development Proposals

3.1

Accessible Path Network

3.1.1

The most pressing need relates to the improvement and essential maintenance of the path network including the need to make more areas of the SHHG accessible for wheelchairs and buggies. Many of the path surfaces around the SHHG are in very poor condition, particularly those in the Winter Garden and surrounding the National Collections, and will need to be repaired within the next 12 months.

3.1.2

Making the SHHG more accessible will always be a challenge and not practically achievable in many areas. However, it would be possible to extend the existing accessible path network to allow access to further popular areas of the SHHG such as Ampfield Wood Valley, Himalayan Valley, the pond and surrounding areas of Jermyn's House and Magnolia Avenue. Even if this proposal were to go ahead only a third of the SHHG would be fully accessible. The SHHG has a high proportion of older visitors and young children, many of whom are in pushchairs. The extension of the accessible path network would be a major project. In order to minimise disruption and take advantage of the (usually) better spring and summer weather conditions work would need to be phased.

3.2

Security/Deer Fencing

3.2.1

The second area of high priority infrastructure work relates to the security of the SHHG and protection of the plant collection from animals, particularly deer. Less than half of the perimeter is protected by secure fencing, hence considerable damage is caused each year by deer. In common with the path network this type of work is difficult to fund-raise for as it lacks the appeal of new and exciting facilities, for example, a lake.

3.3

Centenary Border

3.3.1

One of the SHHG's most popular and well-known features is the Centenary Border. Little has been done in recent years to review the planting and its setting, hence this area is now in danger of failing to meet visitor expectations. Preliminary discussions with local designers are to be held which it is anticipated will lead to detailed proposals for redevelopment of the Border coming forward for consideration at a later date.

3.4

New Developments

3.5.1

The strategic master plan, referred to earlier, has always incorporated the long-term ambitions for a substantial water feature (lake) and the development of a Summer Garden. Both of these would enhance the SHHG's year round appeal and the lake would have the benefit of being used to enhance the education programme and improve the SHHG's bio-diversity. The development of a Summer Garden would be technically easier to deliver than the lake and lower risk, and fund raising has already commenced. The development of a lake however would represent a very significant new development and bring with it horticultural, technical and maintenance challenges together with the viability of being able to raise sufficient funding. A pre-requisite would be the ability to generate additional visitor income that, as a minimum, would sustain any new features in the future. Unfortunately, to date, two grant applications relating to the use of land-fill tax to substantially part-fund a lake have been unsuccessful. New opportunities will continue to be pursued.

3.6

The table below summarises the potential use of the balance of existing funding of £395,000 identified in the table in 2.3 above and represents the SHHG's priority areas for capital investment.

3.7

It is proposed to retain a balance which is sufficient in size to enable future developments to be considered. The balance could then be targeted at the new developments identified in this report particularly where there is the opportunity to generate additional visitor income.

3.8

Subject to approval of the above, future capital, together with interest that is generated on the fund-raising accounts, would be substantially directed at the work identified in this report.

4

Reserve Fund

4.1

During the Charity Commission's review of the Gardens in 2005 they noted that there was no Reserves Policy and subsequently wrote and confirmed that under the Charities SORP (Statement of Recommended Practice) reporting standard it is a legal requirement to have one. The District Auditor has also commented unfavourably on the absence of a Reserves Policy.

4.2

A Reserves Policy needs to indicate what level of reserves is required to make a Trust operate effectively in accordance with its aims and objectives taking into account potential risks and contingencies that may arise from time to time, and in the context of a separate Risks Policy. In establishing a proposed level of reserve the SHHG has reviewed:

· its existing funds

· its current income streams and their level of reliability

· forecasts of income and expenditure up to 2011/12

· the risks facing the charity and their impact

4.3

The main financial risks are seen as:

· potential closure due to storm damage/plant disease/Foot and Mouth disease

· economic recession resulting in a reduction in corporate income and daily visits to the SHHG

· a reduction in County Council funding

This level of risk has been identified as low to medium and therefore it is proposed to establish a Reserves Fund of £50,000 by transferring funds from the development fund set up by the County Council from the annual surpluses, into an interest bearing account in the SHHG's name. A copy of the Reserves Policy is attached at Appendix 1.

5

Five Year Business Plan

5.1

As already noted, the SHHG's has, over the last 3 financial years, exceptionally been permitted to retain its surpluses. To date these have amounted to £140,000 and would enable a significant contribution to the priority projects identified in this report. One of the objectives in developing the new business plan will be to assume a reduced annual cash-limit which recognises the County Council's overall financial position and the desire to increase the proportion of running costs met through income.

5.2

To this end it is proposed that from 2007/08 the cash-limit should be frozen. Over the course of the five year business plan this would enable around £50,000 to be re-deployed towards projects targeted at increasing visits, and income particularly from families.

LINK(S) TO CORPORATE STRATEGY

Yes

No

Hampshire safer and more secure for all

Maximising well-being

Enhancing our quality of place

√

This proposal does not link to the Corporate Strategy but, nevertheless, requires a decision because: