Contact: Anne Hibbert, (01962) 847533; [email protected]

1 Summary

1.1 The attached report sets out the background to the loan made by the County Council to Winchester Area Community Action (WACA) in respect of the Winchester Centre and recommends a capital repayment deferral of 12 months so that WACA can meet other service priorities during this period.

The following decision is sought:

That a twelve month capital payment deferral be agreed with effect from 1 July 2007 with a corresponding increase in the period of the loan.

2 Reason(s)

The Winchester Centre is managed by WACA and provides a base for a range of local voluntary and community organisations providing advice and counselling services, community support for vulnerable people including the elderly, carers and people with learning disabilities and children with special needs. These organisations contribute to all three aims of the corporate strategy and particularly maximising wellbeing. Additional financial support is required in the short term to cover funding pressures relating to the Winchester Centre so that WACA can meet other service priorities.

3 Other options considered and rejected:

3.1 Four options were considered:

a) a 12 month capital repayment deferral commencing 1 July 2007 with a 12 month extension to the loan

b) a 12 month capital repayment deferral commencing 1 July 2007 with no extension to the loan period

c) switching to a fixed repayment schedule from 1 July 2007

d) replacing the loan with a new loan from 1 July 2007 at the current base rate of 5.25%

Options b) c) and d) were rejected in favour of option a) which provides the maximum financial relief in the short to medium term.

4 Conflicts of interest declared by the decision maker or other Executive member consulted - none

5 Dispensation granted by the Standards Committee - none

6 Reason(s) for the matter being dealt with if urgent - none

Approved by: Date: 10 May 2007

Councillor T K Thornber

Executive Member for Policy and Resources